Arrowstreet Capital Limited Partnership Sells 850,837 Shares of LegalZoom.com, Inc. $LZ

Key Points

• Arrowstreet Capital cut its LegalZoom stake by 19.4%, selling 850,837 shares in the first quarter and retaining 3.53 million shares valued at approximately $20.0 million. Institutional investors collectively own 81.99% of the company.
• LegalZoom reported quarterly revenue of $206.78 million, up 12.9% year over year and above estimates, but earnings per share of $0.12 narrowly missed the $0.13 consensus.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $8.25; LZ recently traded at $7.86. CEO Jeffrey Stibel bought 125,000 shares, while insider Nicole Miller sold shares to cover tax obligations.

Arrowstreet Capital Limited Partnership reduced its holdings in LegalZoom.com, Inc. (NASDAQ:LZ - Free Report) by 19.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,533,911 shares of the company's stock after selling 850,837 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 2.06% of LegalZoom.com worth $20,037,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Walleye Capital LLC raised its position in shares of LegalZoom.com by 172.5% during the 1st quarter. Walleye Capital LLC now owns 354,031 shares of the company's stock valued at $2,007,000 after acquiring an additional 224,100 shares during the last quarter. Cetera Investment Advisers bought a new position in shares of LegalZoom.com in the 1st quarter worth $58,000. PNC Financial Services Group Inc. boosted its position in shares of LegalZoom.com by 11,415.2% in the 1st quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company's stock worth $43,000 after purchasing an additional 7,534 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of LegalZoom.com by 3.0% during the first quarter. Dimensional Fund Advisors LP now owns 3,112,895 shares of the company's stock worth $17,650,000 after purchasing an additional 91,131 shares during the period. Finally, SEB Asset Management AB acquired a new stake in shares of LegalZoom.com during the first quarter worth $1,881,000. 81.99% of the stock is owned by institutional investors.

LegalZoom.com Trading Down 6.7%

LZ stock opened at $7.86 on Friday. LegalZoom.com, Inc. has a 1-year low of $5.22 and a 1-year high of $12.40. The firm has a market cap of $1.35 billion, a PE ratio of 131.01, a P/E/G ratio of 1.48 and a beta of 1.31. The business's 50-day moving average price is $6.62 and its two-hundred day moving average price is $6.80.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). LegalZoom.com had a return on equity of 11.53% and a net margin of 1.46%.The business had revenue of $206.78 million for the quarter, compared to analyst estimates of $202.14 million. During the same period in the prior year, the business earned $0.13 EPS. The company's revenue for the quarter was up 12.9% compared to the same quarter last year. On average, analysts forecast that LegalZoom.com, Inc. will post 0.32 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Weiss Ratings reissued a "sell (d+)" rating on shares of LegalZoom.com in a research note on Thursday, July 2nd. UBS Group decreased their target price on LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, May 7th. Citigroup decreased their target price on LegalZoom.com from $8.50 to $7.50 and set a "neutral" rating for the company in a research report on Friday, May 22nd. Wall Street Zen raised LegalZoom.com from a "hold" rating to a "buy" rating in a research note on Tuesday. Finally, JPMorgan Chase & Co. cut their price target on shares of LegalZoom.com from $11.00 to $8.00 and set an "overweight" rating on the stock in a research report on Wednesday, June 24th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $8.25.

Insider Activity at LegalZoom.com

In related news, insider Nicole Miller sold 19,199 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $6.58, for a total value of $126,329.42. Following the completion of the transaction, the insider directly owned 1,119,222 shares of the company's stock, valued at approximately $7,364,480.76. This represents a 1.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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, CEO Jeffrey M. Stibel bought 125,000 shares of the stock in a transaction on Monday, May 11th. The shares were purchased at an average price of $6.15 per share, with a total value of $768,750.00. Following the acquisition, the chief executive officer owned 2,955,609 shares in the company, valued at approximately $18,176,995.35. This represents a 4.42% increase in their position. The SEC filing for this purchase provides additional information. 7.40% of the stock is currently owned by insiders.

LegalZoom.com Company Profile

LegalZoom.com, Inc NASDAQ: LZ operates as a leading online legal technology company that provides a broad range of legal and business services to individuals, families and small businesses. Through its digital platform, the company offers customized legal documents and filing services, including business formation (LLCs, corporations and nonprofits), estate planning (wills and trusts), intellectual property protection (trademarks and copyrights), and ongoing compliance support. LegalZoom also connects customers with independent attorneys for consultations on matters such as family law, immigration and real estate.

Founded in 2001 by entrepreneurs Brian Lee, Brian P.

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