Disco (OTCMKTS:DSCSY) Shares Gap Up - Still a Buy?

Key Points

• Disco shares opened higher, rising from a previous close of $36.98 to $38.47 before settling near $37.85, though the stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is generally positive: Jefferies upgraded the stock to “buy,” while Zacks downgraded it to “hold,” resulting in a consensus “Moderate Buy” rating.
• Disco reported quarterly earnings of $0.20 per share on $717.28 million in revenue, with a 31.65% net margin; hedge fund Azimuth Capital also initiated a position worth approximately $11.9 million.

Disco Corp (OTCMKTS:DSCSY - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $36.98, but opened at $38.47. Disco shares last traded at $37.8450, with a volume of 23,055 shares traded.

Analysts Set New Price Targets

A number of brokerages have issued reports on DSCSY. Jefferies Financial Group upgraded Disco from a "hold" rating to a "buy" rating in a research note on Monday, July 27th. Zacks Research cut Disco from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 19th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy".

Disco Price Performance

The stock has a market capitalization of $40.92 billion, a PE ratio of 43.36 and a beta of 1.55. The stock's 50 day simple moving average is $43.20 and its two-hundred day simple moving average is $44.11.

Disco (OTCMKTS:DSCSY - Get Free Report) last released its earnings results on Thursday, July 23rd. The company reported $0.20 earnings per share for the quarter. Disco had a net margin of 31.65% and a return on equity of 26.03%. The firm had revenue of $717.28 million during the quarter. As a group, equities research analysts predict that Disco Corp will post 1.05 earnings per share for the current fiscal year.

Institutional Trading of Disco

A hedge fund recently bought a new position in Disco stock. Azimuth Capital Investment Management LLC purchased a new stake in shares of Disco Corp (OTCMKTS:DSCSY - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 237,250 shares of the company's stock, valued at approximately $11,862,000. Institutional investors own 0.03% of the company's stock.

About Disco

Disco OTCMKTS: DSCSY is a manufacturer of precision processing equipment and consumables for the semiconductor and electronics industries. The company's product portfolio includes wafer dicing saws, wafer thinning and grinding systems, laser dicing equipment, polishing systems, and diamond blades and wheels, along with associated tooling and process consumables designed for high-precision cutting and surface finishing.

Disco's products are used in critical back-end semiconductor manufacturing steps such as dicing, singulation, thinning, surface preparation and polishing across applications including IC packaging, power devices, LEDs, MEMS and sensors.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source