Disco (OTCMKTS:DSCSY) Shares Gap Down - Time to Sell?

Key Points

• Disco shares opened sharply lower, falling from a previous close of $32.43 to $30.69 and later trading near $30.83. The stock remains below its 50-day and 200-day moving averages of $36.04 and $41.25, respectively.
• Despite the decline, analyst sentiment is strongly positive: Zacks upgraded Disco to “strong buy” and Jefferies raised its rating to “buy.” The stock has an average rating of “Strong Buy” from the two analysts covering it.
• Disco reported quarterly EPS of $0.27 on revenue of $897.04 million, with a 31.65% net margin and 26.03% return on equity. Azimuth Capital also initiated a position worth approximately $11.9 million, although institutional investors own only 0.03% of the stock.

Disco Corp (OTCMKTS:DSCSY - Get Free Report)'s share price gapped down before the market opened on Friday. The stock had previously closed at $32.43, but opened at $30.69. Disco shares last traded at $30.8250, with a volume of 46,108 shares trading hands.

Analyst Ratings Changes

Several equities research analysts recently weighed in on DSCSY shares. Zacks Research upgraded Disco from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. Jefferies Financial Group upgraded Disco from a "hold" rating to a "buy" rating in a report on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Strong Buy".

Disco Stock Performance

The business has a 50-day moving average price of $36.04 and a 200 day moving average price of $41.25. The stock has a market capitalization of $33.86 billion, a P/E ratio of 35.87 and a beta of 1.56.

Disco (OTCMKTS:DSCSY - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The company reported $0.27 EPS for the quarter. Disco had a net margin of 31.65% and a return on equity of 26.03%. The company had revenue of $897.04 million for the quarter. As a group, research analysts forecast that Disco Corp will post 1.11 earnings per share for the current fiscal year.

Institutional Trading of Disco

An institutional investor recently bought a new position in Disco stock. Azimuth Capital Investment Management LLC acquired a new position in Disco Corp (OTCMKTS:DSCSY - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 237,250 shares of the company's stock, valued at approximately $11,862,000. 0.03% of the stock is owned by hedge funds and other institutional investors.

About Disco

DISCO Corporation is a Japan-based manufacturer of precision equipment and tools used in the semiconductor and electronics industries. The company develops and produces systems for wafer dicing, grinding and polishing, as well as related consumables such as diamond wheels and other cutting tools.

Its products are used to separate semiconductor wafers into individual chips and to shape, thin and finish semiconductor materials with high precision. DISCO also provides equipment, tools and technical support for applications involving silicon, compound semiconductors and other electronic materials.

Founded in 1937 and headquartered in Tokyo, DISCO serves customers internationally through a global network of sales, service and production operations.

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