Invenomic Capital Management LP Makes New Investment in LegalZoom.com, Inc. $LZ

Key Points

• Invenomic Capital Management LP has made a significant investment in LegalZoom.com, Inc., purchasing over 1 million shares worth approximately $9.5 million, increasing its ownership to 0.61% of the company.
• LegalZoom.com reported a revenue of $192.51 million for the last quarter, which exceeded analyst expectations, with earnings per share meeting the consensus estimate at $0.15.
• Insider trading activity shows that company insiders have sold a combined total of 109,859 shares valued at over $1.1 million in the last 90 days, indicating potential changes in management sentiment.

Invenomic Capital Management LP purchased a new position in shares of LegalZoom.com, Inc. (NASDAQ:LZ - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,098,329 shares of the company's stock, valued at approximately $9,457,000. Invenomic Capital Management LP owned 0.61% of LegalZoom.com at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Jacobs Levy Equity Management Inc. boosted its holdings in LegalZoom.com by 8.2% in the first quarter. Jacobs Levy Equity Management Inc. now owns 2,186,816 shares of the company's stock valued at $18,828,000 after purchasing an additional 166,385 shares in the last quarter. Nuveen LLC acquired a new position in LegalZoom.com in the first quarter valued at approximately $18,585,000. Dimensional Fund Advisors LP boosted its holdings in LegalZoom.com by 2.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,396,523 shares of the company's stock valued at $10,489,000 after purchasing an additional 32,075 shares in the last quarter. Driehaus Capital Management LLC acquired a new position in LegalZoom.com in the first quarter valued at approximately $10,822,000. Finally, Cubist Systematic Strategies LLC boosted its holdings in shares of LegalZoom.com by 169.1% in the first quarter. Cubist Systematic Strategies LLC now owns 1,190,167 shares of the company's stock valued at $10,247,000 after acquiring an additional 747,960 shares during the period. 81.99% of the stock is owned by institutional investors and hedge funds.

LegalZoom.com Trading Down 1.4%

LegalZoom.com stock opened at $10.85 on Friday. The stock has a market cap of $1.96 billion, a PE ratio of 67.82, a P/E/G ratio of 2.52 and a beta of 1.25. The stock has a 50-day moving average price of $9.70 and a 200 day moving average price of $9.01. LegalZoom.com, Inc. has a 52 week low of $6.16 and a 52 week high of $11.93.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.15 EPS for the quarter, meeting the consensus estimate of $0.15. The company had revenue of $192.51 million during the quarter, compared to analysts' expectations of $182.49 million. LegalZoom.com had a return on equity of 20.36% and a net margin of 4.07%.The firm's revenue was up 8.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.10 EPS. LegalZoom.com has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, equities analysts predict that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

Insider Buying and Selling at LegalZoom.com

In other LegalZoom.com news, insider Nicole Miller sold 25,154 shares of LegalZoom.com stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $10.82, for a total value of $272,166.28. Following the completion of the sale, the insider owned 960,032 shares in the company, valued at $10,387,546.24. The trade was a 2.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director John Francis Murphy sold 24,250 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $10.57, for a total value of $256,322.50. Following the sale, the director owned 69,953 shares of the company's stock, valued at $739,403.21. The trade was a 25.74% decrease in their position. The disclosure for this sale can be found here. Insiders sold 109,859 shares of company stock worth $1,193,100 in the last 90 days. 5.90% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. JMP Securities reissued a "market perform" rating on shares of LegalZoom.com in a report on Thursday, May 15th. Citigroup increased their price objective on LegalZoom.com from $10.00 to $12.00 and gave the company a "neutral" rating in a report on Monday, August 25th. Barclays increased their price objective on LegalZoom.com from $9.00 to $10.00 and gave the company an "equal weight" rating in a report on Tuesday, August 12th. Bank of America raised LegalZoom.com from an "underperform" rating to a "buy" rating and increased their price target for the stock from $8.00 to $12.00 in a report on Friday, August 8th. Finally, Morgan Stanley increased their price target on LegalZoom.com from $7.00 to $8.00 and gave the stock an "underweight" rating in a report on Friday, May 9th. 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. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $10.50.

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.

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