CS Disco (NYSE:LAW) Stock Price Down 1.1% - Here's Why

Key Points

• CS Disco shares fell 1.1% to $4.41 during Tuesday trading, with roughly 173,542 shares changing hands. The company has a $286.3 million market capitalization and trades below the analyst consensus target of $8.00.
• Analyst sentiment remains mixed, with two Buy ratings, one Hold, and one Sell; Weiss Ratings recently reaffirmed a “sell (D-)” rating.
• CS Disco met quarterly expectations with an adjusted loss of $0.06 per share and revenue of $43.15 million, but it reported a negative net margin of 24.20%. Insiders sold 31,267 shares worth about $130,696 over the past 90 days, primarily to cover tax obligations tied to equity awards.

CS Disco, Inc. (NYSE:LAW - Get Free Report)'s share price fell 1.1% during trading on Tuesday. The company traded as low as $4.37 and last traded at $4.41. Approximately 173,542 shares traded hands during mid-day trading, an increase of 3% from the average daily volume of 169,035 shares. The stock had previously closed at $4.46.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a "sell (d-)" rating on shares of CS Disco in a report on Tuesday, September 29th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $8.00.

CS Disco Trading Down 1.1%

The company has a market cap of $286.30 million, a PE ratio of -7.00 and a beta of 1.91. The firm's 50-day simple moving average is $4.26 and its two-hundred day simple moving average is $4.01.

CS Disco (NYSE:LAW - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.06) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.06). The business had revenue of $43.15 million for the quarter, compared to analyst estimates of $43.10 million. CS Disco had a negative net margin of 24.20% and a negative return on equity of 26.58%.

Insider Transactions at CS Disco

In related news, insider Susan Garcia sold 6,840 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $4.18, for a total value of $28,591.20. Following the sale, the insider owned 139,109 shares in the company, valued at $581,475.62. This represents a 4.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Melanie Antoon sold 8,514 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $4.18, for a total transaction of $35,588.52. Following the completion of the transaction, the executive vice president owned 267,507 shares in the company, valued at approximately $1,118,179.26. This trade represents a 3.08% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 31,267 shares of company stock valued at $130,696. 16.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On CS Disco

A number of institutional investors have recently bought and sold shares of LAW. Squarepoint Ops LLC purchased a new stake in shares of CS Disco in the 2nd quarter valued at $629,000. Hsbc Holdings PLC acquired a new stake in shares of CS Disco in the second quarter worth $111,000. Formula Growth Ltd. acquired a new stake in shares of CS Disco in the second quarter worth $3,024,000. Public Employees Retirement System of Ohio purchased a new position in shares of CS Disco during the second quarter worth $128,000. Finally, Corient Private Wealth LP purchased a new position in shares of CS Disco during the second quarter worth $95,000. 58.05% of the stock is owned by hedge funds and other institutional investors.

About CS Disco

CS Disco, Inc NYSE: LAW is a legal technology company that provides cloud-based software for law firms, corporate legal departments and government organizations. Its platform is designed to help legal professionals manage the discovery and litigation process more efficiently, from collecting and organizing information to reviewing documents and preparing cases.

The company's products support electronic discovery, legal document review, case management, legal holds and other litigation-related workflows.

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