Wall Street Zen Downgrades CS Disco (NYSE:LAW) to Hold

Key Points

• Wall Street Zen downgraded CS Disco from “buy” to “hold”, adding to a mixed analyst picture that now includes two Buy ratings, one Hold, and one Sell. MarketBeat says the stock’s consensus rating is still Hold with an average price target of $8.00.
• CS Disco recently reported better-than-expected quarterly results, posting EPS of -$0.07 versus estimates of -$0.09 and revenue of $41.88 million versus $40.30 million expected. Even so, the company remains unprofitable, with negative return on equity and net margin.
• Insider buying has been notable, including purchases by Director Krishna Srinivasan and CEO Eric Friedrichsen. Over the last 90 days, insiders bought far more stock than they sold, while institutional investors hold 58.05% of the shares outstanding.

CS Disco (NYSE:LAW - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

LAW has been the topic of several other research reports. Weiss Ratings upgraded CS Disco from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, April 29th. Needham & Company LLC reiterated a "buy" rating and set a $10.00 target price on shares of CS Disco in a report on Thursday, February 26th. Finally, Canaccord Genuity Group dropped their target price on CS Disco from $9.00 to $6.00 and set a "buy" rating on the stock in a report on Thursday, February 26th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $8.00.

CS Disco Stock Performance

LAW opened at $4.09 on Friday. CS Disco has a 52-week low of $2.45 and a 52-week high of $9.11. The firm has a market capitalization of $262.50 million, a PE ratio of -6.02 and a beta of 1.95. The business's 50-day simple moving average is $4.03 and its 200 day simple moving average is $5.68.

CS Disco (NYSE:LAW - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported ($0.07) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.09) by $0.02. CS Disco had a negative return on equity of 26.12% and a negative net margin of 26.28%.The business had revenue of $41.88 million for the quarter, compared to analyst estimates of $40.30 million.

Insider Transactions at CS Disco

In other CS Disco news, Director Krishna Srinivasan acquired 40,000 shares of the company's stock in a transaction on Friday, February 27th. The shares were purchased at an average price of $3.25 per share, for a total transaction of $130,000.00. Following the completion of the purchase, the director directly owned 45,000 shares of the company's stock, valued at approximately $146,250. This represents a 800.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Eric Friedrichsen acquired 15,500 shares of the company's stock in a transaction on Friday, February 27th. The stock was acquired at an average price of $2.90 per share, for a total transaction of $44,950.00. Following the purchase, the chief executive officer directly owned 1,508,172 shares of the company's stock, valued at approximately $4,373,698.80. This trade represents a 1.04% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have purchased 1,090,200 shares of company stock valued at $3,475,943 and have sold 27,711 shares valued at $85,073. 16.10% of the stock is currently owned by corporate insiders.

Institutional Trading of CS Disco

Several institutional investors and hedge funds have recently bought and sold shares of the business. CWM LLC raised its stake in CS Disco by 73.5% in the third quarter. CWM LLC now owns 4,804 shares of the company's stock valued at $31,000 after buying an additional 2,035 shares during the period. Jacobs Levy Equity Management Inc. raised its stake in CS Disco by 1.0% in the third quarter. Jacobs Levy Equity Management Inc. now owns 205,372 shares of the company's stock valued at $1,327,000 after buying an additional 2,045 shares during the period. PDT Partners LLC increased its stake in shares of CS Disco by 7.6% during the second quarter. PDT Partners LLC now owns 33,795 shares of the company's stock worth $148,000 after purchasing an additional 2,388 shares during the period. PNC Financial Services Group Inc. increased its stake in shares of CS Disco by 19.3% during the third quarter. PNC Financial Services Group Inc. now owns 15,472 shares of the company's stock worth $100,000 after purchasing an additional 2,504 shares during the period. Finally, Jane Street Group LLC increased its stake in shares of CS Disco by 5.9% during the second quarter. Jane Street Group LLC now owns 47,260 shares of the company's stock worth $207,000 after purchasing an additional 2,632 shares during the period. Institutional investors own 58.05% of the company's stock.

CS Disco Company Profile

CS Disco, Inc is a provider of cloud-native, artificial intelligence-driven legal applications designed to streamline e-discovery, document review and compliance processes for law firms and corporate legal departments. The Austin, Texas–based company offers a unified platform that automates labor-intensive tasks using machine learning and predictive analytics, enabling legal professionals to process, search and review large volumes of data with greater speed and accuracy.

At the core of CS Disco's product suite is its flagship e-discovery application, which supports early case assessment, data processing, review analytics and production workflows.

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