Disco (OTCMKTS:DSCSY) Shares Gap Down - What's Next?

Key Points

• Disco shares gapped lower, opening at $30.38 versus the prior close of $33.94 and later trading near $30.98. The stock remains below its 50-day and 200-day moving averages of $35.41 and $41.70, respectively.
• Despite the decline, analysts remain bullish: Jefferies upgraded Disco to “Buy” and Zacks Research to “Strong Buy,” giving the company a consensus “Strong Buy” rating.
• Disco reported quarterly earnings of $0.27 per share on revenue of $897.04 million, with a 32.04% net margin and 27.68% return on equity. Azimuth Capital also initiated a position worth approximately $11.9 million.

Disco Corp (OTCMKTS:DSCSY - Get Free Report) shares gapped down prior to trading on Friday. The stock had previously closed at $33.94, but opened at $30.38. Disco shares last traded at $30.98, with a volume of 8,425 shares.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on DSCSY. Jefferies Financial Group raised shares of Disco from a "hold" rating to a "buy" rating in a research note on Monday, July 27th. Zacks Research raised shares of Disco from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. One research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. Based on data from MarketBeat, Disco presently has a consensus rating of "Strong Buy".

Disco Price Performance

The stock has a 50 day simple moving average of $35.41 and a two-hundred day simple moving average of $41.70. The company has a market cap of $33.53 billion, a price-to-earnings ratio of 32.87 and a beta of 1.56.

Disco (OTCMKTS:DSCSY - Get Free Report) last posted its earnings results on Thursday, October 22nd. The company reported $0.27 earnings per share for the quarter. The company had revenue of $897.04 million for the quarter. Disco had a net margin of 32.04% and a return on equity of 27.68%. As a group, research analysts forecast that Disco Corp will post 1.11 EPS for the current year.

Institutional Investors Weigh In On Disco

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

Disco Company Profile

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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