AlphaQuest LLC Sells 79,008 Shares of LegalZoom.com, Inc. $LZ

Key Points

• AlphaQuest LLC significantly reduced its stake in LegalZoom.com by 92.2%, selling 79,008 shares and now holding just 6,689 shares valued at $58,000 as per the latest SEC filing.
• Despite the stake reduction by AlphaQuest, multiple institutional investors, including Nuveen LLC and Jacobs Levy Equity Management Inc., have increased their positions or initiated new investments in LegalZoom.com.
• LegalZoom.com reported a quarterly EPS of $0.15, meeting analysts' expectations, and has set its FY 2025 guidance with a projected EPS of 0.25.

AlphaQuest LLC trimmed its holdings in LegalZoom.com, Inc. (NASDAQ:LZ - Free Report) by 92.2% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 6,689 shares of the company's stock after selling 79,008 shares during the period. AlphaQuest LLC's holdings in LegalZoom.com were worth $58,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors also recently modified their holdings of the company. Quantbot Technologies LP bought a new stake in LegalZoom.com in the first quarter valued at $29,000. State of Wyoming boosted its holdings in LegalZoom.com by 42.1% in the fourth quarter. State of Wyoming now owns 8,347 shares of the company's stock worth $63,000 after acquiring an additional 2,475 shares in the last quarter. GAMMA Investing LLC lifted its holdings in LegalZoom.com by 2,750.6% in the first quarter. GAMMA Investing LLC now owns 9,635 shares of the company's stock valued at $83,000 after acquiring an additional 9,297 shares during the period. Jefferies Financial Group Inc. purchased a new stake in LegalZoom.com in the 1st quarter valued at $91,000. Finally, Bryce Point Capital LLC acquired a new position in LegalZoom.com during the 1st quarter worth about $103,000. 81.99% of the stock is currently owned by institutional investors.

Insider Activity at LegalZoom.com

In other news, Director John Francis Murphy sold 24,250 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $10.57, for a total transaction of $256,322.50. Following the transaction, the director owned 69,953 shares in the company, valued at approximately $739,403.21. This trade represents a 25.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Noel Bertram Watson sold 27,319 shares of LegalZoom.com stock in a transaction on Monday, August 25th. The shares were sold at an average price of $11.07, for a total value of $302,421.33. Following the completion of the transaction, the chief financial officer owned 1,676,426 shares in the company, valued at approximately $18,558,035.82. The trade was a 1.60% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 109,859 shares of company stock valued at $1,193,100. Insiders own 5.90% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have weighed in on LZ. JPMorgan Chase & Co. raised their price target on LegalZoom.com from $12.00 to $14.00 and gave the stock an "overweight" rating in a research report on Monday. Citigroup lifted their target price on shares of LegalZoom.com from $10.00 to $12.00 and gave the stock a "neutral" rating in a report on Monday, August 25th. JMP Securities reaffirmed a "market perform" rating on shares of LegalZoom.com in a report on Thursday, May 15th. Wall Street Zen cut shares of LegalZoom.com from a "strong-buy" rating to a "buy" rating in a report on Friday. Finally, Bank of America raised shares of LegalZoom.com from an "underperform" rating to a "buy" rating and increased their price target for the company from $8.00 to $12.00 in a research report on Friday, August 8th. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, LegalZoom.com currently has an average rating of "Hold" and a consensus target price of $10.83.

LegalZoom.com Price Performance

LegalZoom.com stock traded up $0.09 during midday trading on Monday, hitting $10.41. 1,621,519 shares of the company were exchanged, compared to its average volume of 2,110,491. LegalZoom.com, Inc. has a fifty-two week low of $6.16 and a fifty-two week high of $11.93. The company has a market cap of $1.88 billion, a PE ratio of 65.04, a price-to-earnings-growth ratio of 2.36 and a beta of 1.25. The company's fifty day moving average price is $9.73 and its 200-day moving average price is $9.02.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.15 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.15. The company had revenue of $192.51 million for the quarter, compared to analyst estimates of $182.49 million. LegalZoom.com had a return on equity of 20.36% and a net margin of 4.07%.LegalZoom.com's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.10 earnings per share. LegalZoom.com has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, analysts expect that LegalZoom.com, Inc. will post 0.25 EPS for the current fiscal year.

About LegalZoom.com

LegalZoom.com, Inc, together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations.