Caxton Associates LLP Takes $387,000 Position in LegalZoom.com, Inc. $LZ

Key Points

• Caxton Associates LLP acquired a new stake in LegalZoom.com, purchasing approximately $387,000 worth of shares in the first quarter.
• Insider sales were notable, with Nicole Miller selling 25,154 shares and John Francis Murphy selling 24,250 shares, indicating a potential decrease in insider confidence.
• Analysts are optimistic about LegalZoom, with multiple firms raising their price targets and Bank of America upgrading the stock to a "buy" rating.

Caxton Associates LLP bought a new position in LegalZoom.com, Inc. (NASDAQ:LZ - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 44,901 shares of the company's stock, valued at approximately $387,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Quantbot Technologies LP acquired a new position in LegalZoom.com during the 1st quarter worth $29,000. State of Wyoming lifted its holdings in LegalZoom.com by 42.1% during the 4th quarter. State of Wyoming now owns 8,347 shares of the company's stock worth $63,000 after buying an additional 2,475 shares in the last quarter. GAMMA Investing LLC lifted its holdings in LegalZoom.com by 2,750.6% during the 1st quarter. GAMMA Investing LLC now owns 9,635 shares of the company's stock worth $83,000 after buying an additional 9,297 shares in the last quarter. Jefferies Financial Group Inc. acquired a new position in LegalZoom.com during the 1st quarter worth $91,000. Finally, Bryce Point Capital LLC acquired a new position in LegalZoom.com during the 1st quarter worth $103,000. 81.99% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Bank of America raised LegalZoom.com from an "underperform" rating to a "buy" rating and upped their price objective for the stock from $8.00 to $12.00 in a report on Friday, August 8th. Wall Street Zen downgraded LegalZoom.com from a "strong-buy" rating to a "buy" rating in a report on Friday, September 5th. Barclays upped their price objective on LegalZoom.com from $9.00 to $10.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 12th. Citigroup upped their target price on shares of LegalZoom.com from $10.00 to $12.00 and gave the company a "neutral" rating in a research report on Monday, August 25th. Finally, JPMorgan Chase & Co. upped their target price on shares of LegalZoom.com from $12.00 to $14.00 and gave the company an "overweight" rating in a research report on Monday, September 8th. Two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $10.83.

LegalZoom.com Stock Performance

NASDAQ:LZ traded down $0.11 during trading hours on Tuesday, reaching $10.42. The company's stock had a trading volume of 1,514,131 shares, compared to its average volume of 2,120,827. The firm has a market capitalization of $1.88 billion, a price-to-earnings ratio of 65.13, a PEG ratio of 2.53 and a beta of 1.25. LegalZoom.com, Inc. has a 1 year low of $6.26 and a 1 year high of $11.93. The firm has a 50-day simple moving average of $9.90 and a 200-day simple moving average of $9.07.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last announced its quarterly 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. LegalZoom.com had a net margin of 4.07% and a return on equity of 20.36%. The business had revenue of $192.51 million for the quarter, compared to analyst estimates of $182.49 million. During the same quarter last year, the firm earned $0.10 EPS. The company's revenue was up 8.5% on a year-over-year basis. LegalZoom.com has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities analysts anticipate that LegalZoom.com, Inc. will post 0.25 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Nicole Miller sold 25,154 shares of the business's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $10.82, for a total transaction of $272,166.28. Following the completion of the transaction, the insider directly owned 960,032 shares of the company's stock, valued at $10,387,546.24. The trade was a 2.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John Francis Murphy sold 24,250 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $10.57, for a total transaction of $256,322.50. Following the sale, the director directly owned 69,953 shares of the company's stock, valued at approximately $739,403.21. This represents a 25.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 109,859 shares of company stock valued at $1,193,100 over the last three months. Insiders own 5.90% of the company's stock.

LegalZoom.com Profile

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.