LegalZoom.com, Inc. $LZ Shares Sold by Tudor Investment Corp ET AL

Key Points

• Tudor Investment Corp cut its stake in LegalZoom by 54.2% in Q3, selling 585,671 shares and now holding 495,280 shares worth about $5.14 million, while institutional investors still own roughly 81.99% of the company.
• LegalZoom's board approved a $100.0 million share repurchase program (up to ~8.1% of shares), a signal management believes the stock may be undervalued.
• In the latest quarter LegalZoom reported revenue of $190.27M, up 17.7% year-over-year and beating estimates, though EPS missed by $0.01; the stock trades near its 1-year low with a market cap of about $1.03B and a consensus analyst rating of "Hold" (target $9.42).

Tudor Investment Corp ET AL lessened its stake in LegalZoom.com, Inc. (NASDAQ:LZ - Free Report) by 54.2% in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 495,280 shares of the company's stock after selling 585,671 shares during the quarter. Tudor Investment Corp ET AL owned about 0.28% of LegalZoom.com worth $5,141,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the company. Boston Partners acquired a new stake in LegalZoom.com during the 3rd quarter valued at $20,686,000. Neumeier Poma Investment Counsel LLC purchased a new position in LegalZoom.com in the 3rd quarter valued at about $18,106,000. Qube Research & Technologies Ltd grew its stake in shares of LegalZoom.com by 180.5% during the second quarter. Qube Research & Technologies Ltd now owns 1,797,252 shares of the company's stock valued at $16,014,000 after acquiring an additional 1,156,462 shares in the last quarter. Lazard Asset Management LLC grew its stake in shares of LegalZoom.com by 507.3% during the second quarter. Lazard Asset Management LLC now owns 1,104,734 shares of the company's stock valued at $9,842,000 after acquiring an additional 922,829 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its position in shares of LegalZoom.com by 60.4% during the third quarter. JPMorgan Chase & Co. now owns 2,170,327 shares of the company's stock worth $22,528,000 after acquiring an additional 817,462 shares during the last quarter. Hedge funds and other institutional investors own 81.99% of the company's stock.

Insider Activity at LegalZoom.com

In related news, CFO Noel Bertram Watson sold 15,000 shares of the company's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $6.96, for a total transaction of $104,400.00. Following the completion of the transaction, the chief financial officer directly owned 1,480,860 shares in the company, valued at $10,306,785.60. This represents a 1.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Nicole Miller sold 23,325 shares of the business's stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $6.63, for a total transaction of $154,644.75. Following the transaction, the insider directly owned 813,033 shares of the company's stock, valued at $5,390,408.79. The trade was a 2.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 5.90% of the stock is currently owned by corporate insiders.

LegalZoom.com Stock Performance

Shares of NASDAQ:LZ opened at $5.98 on Wednesday. The company's fifty day moving average is $7.37 and its two-hundred day moving average is $9.12. LegalZoom.com, Inc. has a 1-year low of $5.89 and a 1-year high of $12.40. The stock has a market capitalization of $1.03 billion, a price-to-earnings ratio of 74.76, a price-to-earnings-growth ratio of 1.37 and a beta of 1.25.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last posted its quarterly earnings results on Thursday, February 19th. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.01). LegalZoom.com had a net margin of 2.04% and a return on equity of 6.35%. The business had revenue of $190.27 million during the quarter, compared to analyst estimates of $184.85 million. During the same period last year, the firm posted $0.19 earnings per share. The company's quarterly revenue was up 17.7% on a year-over-year basis. Sell-side analysts expect that LegalZoom.com, Inc. will post 0.25 EPS for the current fiscal year.

LegalZoom.com declared that its Board of Directors has initiated a share repurchase program on Thursday, February 19th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to repurchase up to 8.1% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

LZ has been the subject of a number of analyst reports. UBS Group reduced their price target on LegalZoom.com from $12.00 to $8.00 and set a "neutral" rating for the company in a report on Friday, February 20th. Zacks Research raised shares of LegalZoom.com from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Weiss Ratings restated a "hold (c)" rating on shares of LegalZoom.com in a research note on Monday, December 29th. JPMorgan Chase & Co. reduced their price objective on shares of LegalZoom.com from $14.00 to $11.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Finally, Barclays reissued an "underweight" rating and issued a $6.00 target price (down from $9.00) on shares of LegalZoom.com in a research report on Wednesday, March 4th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, LegalZoom.com presently has a consensus rating of "Hold" and a consensus target price of $9.42.

About LegalZoom.com

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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