UBS Group AG Increases Stock Position in LegalZoom.com, Inc. $LZ

Key Points

• UBS Group AG increased its LegalZoom stake by 87.9% in the fourth quarter, bringing its holdings to 613,537 shares worth about $6.1 million.
• Analyst sentiment remains mixed: UBS cut its price target to $7 and kept a neutral rating, while the overall consensus is a Hold with an average target price of $9.25.
• LegalZoom reported revenue growth of 12.9% year over year in its latest quarter, but EPS missed estimates by $0.01; the company also has a $100 million share buyback authorization in place.

UBS Group AG lifted its stake in shares of LegalZoom.com, Inc. (NASDAQ:LZ - Free Report) by 87.9% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 613,537 shares of the company's stock after acquiring an additional 287,063 shares during the period. UBS Group AG owned approximately 0.35% of LegalZoom.com worth $6,092,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Boston Partners purchased a new stake in LegalZoom.com during the third quarter valued at about $20,686,000. Neumeier Poma Investment Counsel LLC bought a new position in LegalZoom.com in the third quarter worth $18,106,000. Qube Research & Technologies Ltd lifted its position in LegalZoom.com by 180.5% during the 2nd 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 during the period. Lazard Asset Management LLC lifted its holdings 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 purchasing an additional 922,829 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its position in LegalZoom.com by 60.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 2,170,327 shares of the company's stock valued at $22,528,000 after buying an additional 817,462 shares in the last quarter. Hedge funds and other institutional investors own 81.99% of the company's stock.

Analysts Set New Price Targets

Several research analysts have issued reports on LZ shares. UBS Group decreased their target price on shares of LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, May 7th. Weiss Ratings downgraded LegalZoom.com from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. Zacks Research upgraded LegalZoom.com from a "strong sell" rating to a "hold" rating in a research note on Monday, February 23rd. JPMorgan Chase & Co. lowered their price target on shares of LegalZoom.com from $14.00 to $11.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Finally, Barclays reiterated an "underweight" rating and set 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, three have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $9.25.

LegalZoom.com Price Performance

Shares of LZ opened at $6.43 on Thursday. LegalZoom.com, Inc. has a 1-year low of $5.28 and a 1-year high of $12.40. The firm has a market capitalization of $1.10 billion, a price-to-earnings ratio of 107.18, a PEG ratio of 1.12 and a beta of 1.33. The company has a 50-day moving average of $6.14 and a 200 day moving average of $7.96.

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

LegalZoom.com announced that its board has approved a stock buyback program on Thursday, February 19th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to purchase up to 8.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Insider Activity

In related news, CFO Noel Bertram Watson sold 15,000 shares of the business's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $6.45, for a total transaction of $96,750.00. Following the completion of the transaction, the chief financial officer owned 2,041,847 shares in the company, valued at $13,169,913.15. The trade was a 0.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available 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 acquired 125,000 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were acquired 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. The trade was a 4.42% increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders have sold 57,524 shares of company stock worth $377,724. 5.90% of the stock is currently owned by company 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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