LegalZoom.com, Inc. (NASDAQ:LZ) Stock Has Consensus Price Target of $7.30

Key Points

• Analyst sentiment is cautious: Eight brokerages give LegalZoom a consensus “Reduce” rating, with three sells and five holds. The average 12-month price target is $7.30 versus the stock’s reported price of $5.98.
• LegalZoom’s latest quarterly results slightly exceeded earnings expectations, reporting $0.16 EPS against a $0.15 consensus estimate, while revenue of $205.29 million narrowly missed forecasts but increased 6.6% year over year.
• Insiders have been selling shares: Company insiders sold 577,475 shares worth approximately $3.38 million over the past 90 days, although institutional investors own a substantial 81.99% of the stock.

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) has been assigned an average recommendation of "Reduce" from the eight brokerages that are presently covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell rating and five have assigned a hold rating to the company. The average 12-month price target among brokers that have covered the stock in the last year is $7.30.

A number of analysts have issued reports on the stock. William Blair cut shares of LegalZoom.com from an "outperform" rating to a "market perform" rating in a research note on Thursday, August 6th. Wall Street Zen upgraded shares of LegalZoom.com from a "hold" rating to a "buy" rating in a research note on Saturday, September 26th. JPMorgan Chase & Co. restated a "neutral" rating and set a $7.00 price target (down from $8.00) on shares of LegalZoom.com in a report on Thursday, August 6th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of LegalZoom.com in a report on Tuesday, September 29th.

LegalZoom.com Trading Up 0.8%

LZ opened at $5.98 on Friday. The stock has a fifty day moving average price of $6.02 and a 200 day moving average price of $6.27. LegalZoom.com has a 1 year low of $5.22 and a 1 year high of $12.40. The stock has a market cap of $1.02 billion, a price-to-earnings ratio of 66.44, a PEG ratio of 1.12 and a beta of 1.20.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.15 by $0.01. The company had revenue of $205.29 million during the quarter, compared to the consensus estimate of $205.83 million. LegalZoom.com had a return on equity of 15.83% and a net margin of 2.13%. The business's quarterly revenue was up 6.6% on a year-over-year basis. During the same period last year, the business earned $0.15 EPS. As a group, sell-side analysts forecast that LegalZoom.com will post 0.32 earnings per share for the current fiscal year.

Insider Transactions at LegalZoom.com

In other news, insider Nicole Miller sold 33,479 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $5.51, for a total transaction of $184,469.29. Following the transaction, the insider owned 943,453 shares of the company's stock, valued at approximately $5,198,426.03. This represents a 3.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Noel Watson sold 83,629 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $5.83, for a total value of $487,557.07. Following the transaction, the chief financial officer directly owned 1,407,801 shares in the company, valued at approximately $8,207,479.83. This represents a 5.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 577,475 shares of company stock valued at $3,375,197 in the last ninety days. Insiders own 7.40% of the company's stock.

Institutional Investors Weigh In On LegalZoom.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in LZ. State Street Corp grew its position in shares of LegalZoom.com by 3.0% in the second quarter. State Street Corp now owns 4,552,468 shares of the company's stock valued at $27,907,000 after purchasing an additional 132,761 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of LegalZoom.com in the second quarter worth about $47,000. Squarepoint Ops LLC lifted its position in shares of LegalZoom.com by 289.3% during the 2nd quarter. Squarepoint Ops LLC now owns 269,974 shares of the company's stock worth $1,655,000 after purchasing an additional 200,618 shares during the last quarter. Allworth Financial LP lifted its position in shares of LegalZoom.com by 255.1% during the 2nd quarter. Allworth Financial LP now owns 5,014 shares of the company's stock worth $31,000 after purchasing an additional 3,602 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in LegalZoom.com during the 2nd quarter valued at approximately $268,000. 81.99% of the stock is currently owned by institutional investors and hedge funds.

About LegalZoom.com

LegalZoom.com, Inc NASDAQ: LZ operates an online platform that provides legal, compliance and business-related services to individuals, families and small businesses. The company aims to make commonly needed legal and administrative services more accessible through digital tools, guided workflows and access to professional assistance.

Its offerings include business formation services for corporations and limited liability companies, registered-agent services, business licenses, annual report filings, tax services and other compliance solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.