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

CS Disco (NYSE:LAW) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also recently issued reports on the company. Weiss Ratings upgraded CS Disco from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, April 29th. Canaccord Genuity Group reduced their price objective on CS Disco from $9.00 to $6.00 and set a “buy” rating for the company in a research note on Thursday, February 26th. Finally, Needham & Company LLC restated a “buy” rating and issued a $10.00 price objective on shares of CS Disco in a research note on Thursday, February 26th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $8.00.

CS Disco Stock Performance

CS Disco stock opened at $4.09 on Friday. The stock has a 50-day moving average of $4.03 and a two-hundred day moving average of $5.68. CS Disco has a one year low of $2.45 and a one year high of $9.11. The stock has a market cap of $262.48 million, a PE ratio of -6.02 and a beta of 1.95.

CS Disco (NYSE:LAW) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.07) EPS for the quarter, beating analysts’ consensus estimates 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 company had revenue of $41.88 million during the quarter, compared to analysts’ expectations of $40.30 million.

Insider Transactions at CS Disco

In related news, EVP Karen Herckis sold 8,171 shares of CS Disco stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $3.07, for a total transaction of $25,084.97. Following the completion of the transaction, the executive vice president directly owned 132,259 shares in the company, valued at approximately $406,035.13. This trade represents a 5.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Robert P. Goodman purchased 1,026,700 shares of CS Disco stock in a transaction that occurred on Friday, February 27th. The shares were bought at an average price of $3.19 per share, with a total value of $3,275,173.00. Following the completion of the transaction, the director owned 1,038,475 shares of the company’s stock, valued at $3,312,735.25. This represents a 8,719.32% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 1,087,200 shares of company stock valued at $3,463,973 and sold 27,711 shares valued at $85,073. 16.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of LAW. Cubist Systematic Strategies LLC purchased a new position in CS Disco during the first quarter valued at approximately $216,000. Jane Street Group LLC raised its position in CS Disco by 51.6% during the first quarter. Jane Street Group LLC now owns 44,628 shares of the company’s stock valued at $183,000 after acquiring an additional 15,187 shares in the last quarter. Acadian Asset Management LLC purchased a new position in CS Disco during the first quarter valued at approximately $195,000. XTX Topco Ltd purchased a new position in CS Disco during the second quarter valued at approximately $139,000. Finally, Occudo Quantitative Strategies LP purchased a new position in CS Disco during the second quarter valued at approximately $75,000. 58.05% of the stock is currently owned by hedge funds and other institutional investors.

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.