CS Disco Inc. (NYSE: LAW) stock fell -53.63% on Friday to $13.43 against a previous-day closing price of $28.96. With 13.77 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.32 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $16.64 whereas the lowest price it dropped to was $12.78. The 52-week range on LAW shows that it touched its highest point at $69.41 and its lowest point at $16.96 during that stretch. It currently has a 1-year price target of $26.89.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LAW was down-trending over the past week, with a drop of -50.59%, but this was down by -35.93% over a month. Three-month performance dropped to -39.83% while six-month performance fell -65.51%. The stock lost -72.34% in the past year, while it has lost -62.43% so far this year. A look at the trailing 12-month EPS for LAW yields -0.86 with Next year EPS estimates of -0.97. For the next quarter, that number is -0.30. This implies an EPS growth rate of -2.90% for this year and 20.70% for next year.
Float and Shares Shorts:
At present, 57.97 million LAW shares are outstanding with a float of 53.48 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.83 million, which was 6.54% higher than short shares on Jun 14, 2022. In addition to Mr. Kiwi Camara as the firm’s Co-Founder, CEO & Director, Mr. Michael S. Lafair serves as its Chief Financial Officer.
Through their ownership of 90.46% of LAW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.81% of LAW, in contrast to 19.25% held by mutual funds. Shares owned by individuals account for 10.18%. As the largest shareholder in LAW with 3.95% of the stake, Norges Bank Investment Management holds 2,317,485 shares worth 2,317,485. A second-largest stockholder of LAW, Wasatch Advisors, Inc., holds 2,196,566 shares, controlling over 3.75% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in LAW, holding 1,979,140 shares or 3.38% stake. With a 3.95% stake in LAW, the Government Pension Fund – Global is the largest stakeholder. A total of 2,317,485 shares are owned by the mutual fund manager. The Franklin Small Cap Growth Fund, which owns about 2.25% of LAW stock, is the second-largest Mutual Fund holder. It holds 1,318,313 shares valued at 32.35 million. Wasatch Small Cap Growth Fund holds 1.67% of the stake in LAW, owning 981,771 shares worth 24.09 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LAW since 10 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LAW analysts setting a high price target of $35.00 and a low target of $20.00, the average target price over the next 12 months is $27.10. Based on these targets, LAW could surge 160.61% to reach the target high and rise by 48.92% to reach the target low. Reaching the average price target will result in a growth of 101.79% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LAW will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of -$0.72 being high and -$1.07 being low. For LAW, this leads to a yearly average estimate of -$0.99. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. CS Disco Inc. surprised analysts by $0.04 when it reported -$0.23 EPS against a consensus estimate of -$0.27. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is -$0.19 and the low estimate is -$0.34. The average estimate for the next quarter is thus -$0.30.
Summary of Insider Activity:
Insiders traded LAW stock several times over the past three months with 5 Buys and 8 Sells. In these transactions, 168,707 shares were bought while 799,904 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 63 over the past year. The total number of shares bought during that period was 1,886,217 while 9,690,650 shares were sold.