CS Disco (NYSE:LAW) Trading Up 7% – Still a Buy?

Shares of CS Disco, Inc. (NYSE:LAW) rose 7% on Friday . The stock traded as high as $3.69 and last traded at $3.67. 823,083 shares were traded during mid-day trading, an increase of 258% from the average session volume of 230,106 shares. The stock had previously closed at $3.43.

Wall Street Analyst Weigh In

LAW has been the topic of a number of recent research reports. Wall Street Zen lowered CS Disco from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Weiss Ratings downgraded CS Disco from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Tuesday, June 16th. 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. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $8.00.

CS Disco Price Performance

The stock’s 50 day moving average is $3.86 and its two-hundred day moving average is $4.91. The firm has a market capitalization of $235.36 million, a P/E ratio of -5.40 and a beta of 1.91.

CS Disco (NYSE:LAW) last announced its quarterly earnings data on Wednesday, May 6th. The company reported ($0.07) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.02. The firm had revenue of $41.88 million for the quarter, compared to analysts’ expectations of $40.30 million. CS Disco had a negative net margin of 26.28% and a negative return on equity of 26.12%.

Insider Buying and Selling

In related news, CEO Eric Friedrichsen acquired 9,000 shares of the company’s stock in a transaction that occurred on Friday, May 8th. The stock was acquired at an average price of $3.97 per share, for a total transaction of $35,730.00. Following the completion of the acquisition, the chief executive officer owned 1,517,172 shares of the company’s stock, valued at $6,023,172.84. This trade represents a 0.60% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 16.80% of the company’s stock.

Hedge Funds Weigh In On CS Disco

Several institutional investors have recently modified their holdings of the stock. Tower Research Capital LLC TRC raised its position in shares of CS Disco by 87.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,968 shares of the company’s stock valued at $44,000 after acquiring an additional 4,639 shares during the period. Algert Global LLC acquired a new position in CS Disco during the third quarter valued at approximately $70,000. Mercer Global Advisors Inc. ADV bought a new stake in CS Disco in the fourth quarter valued at approximately $99,000. CIBC Asset Management Inc bought a new stake in CS Disco in the fourth quarter valued at approximately $102,000. Finally, BNP Paribas Financial Markets raised its holdings in CS Disco by 242.5% in the third quarter. BNP Paribas Financial Markets now owns 13,450 shares of the company’s stock worth $87,000 after purchasing an additional 9,523 shares during the period. 58.05% of the stock is currently owned by institutional investors and hedge funds.

About CS Disco

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.