LegalZoom.com, Inc. (NASDAQ:LZ) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst sentiment is cautious: LegalZoom.com has an average broker rating of “Hold”, with 3 sell ratings, 4 hold ratings, and 3 buy ratings. The average 12-month price target is $9.25.
• Recent earnings topped revenue expectations but missed EPS: The company reported $0.12 EPS versus the expected $0.13, while revenue came in at $206.78 million, above estimates and up 12.9% year over year.
• CEO bought shares and the company has a buyback in place: CEO Jeffrey M. Stibel purchased 125,000 shares at $6.15 each, and LegalZoom has an approved $100 million stock repurchase plan covering up to 8.1% of shares outstanding.

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) has received an average rating of "Hold" from the ten analysts that are presently covering the company, Marketbeat reports. Three research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have issued a buy rating on the company. The average 12-month price objective among analysts that have issued ratings on the stock in the last year is $9.25.

Several brokerages have recently commented on LZ. JPMorgan Chase & Co. reduced their target price 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. Zacks Research upgraded shares of LegalZoom.com from a "strong sell" rating to a "hold" rating in a research note on Monday, February 23rd. Weiss Ratings downgraded shares of LegalZoom.com from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. Barclays restated an "underweight" rating and issued a $6.00 target price (down from $9.00) on shares of LegalZoom.com in a research note on Wednesday, March 4th. Finally, UBS Group reduced their target price on shares of LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Thursday, May 7th.

Insider Activity

In other news, CEO Jeffrey M. Stibel bought 125,000 shares of LegalZoom.com stock in a transaction dated Monday, May 11th. The shares were bought at an average price of $6.15 per share, for a total transaction of $768,750.00. Following the purchase, the chief executive officer owned 2,955,609 shares of the company's stock, valued at approximately $18,176,995.35. This trade represents a 4.42% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Nicole Miller sold 23,325 shares of the firm's stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $6.63, for a total value of $154,644.75. Following the completion of the sale, the insider owned 813,033 shares of the company's stock, valued at approximately $5,390,408.79. This trade represents 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 owned by corporate insiders.

Institutional Trading of LegalZoom.com

A number of hedge funds and other institutional investors have recently made changes to their positions in LZ. Parkside Financial Bank & Trust acquired a new stake in shares of LegalZoom.com in the third quarter valued at $40,000. Clearstead Advisors LLC increased its stake in shares of LegalZoom.com by 58.5% in the third quarter. Clearstead Advisors LLC now owns 3,906 shares of the company's stock valued at $41,000 after buying an additional 1,441 shares in the last quarter. Osaic Holdings Inc. increased its stake in shares of LegalZoom.com by 477.3% in the second quarter. Osaic Holdings Inc. now owns 4,555 shares of the company's stock valued at $41,000 after buying an additional 3,766 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of LegalZoom.com by 976.4% in the second quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company's stock valued at $41,000 after buying an additional 4,140 shares in the last quarter. Finally, PNC Financial Services Group Inc. increased its stake in shares of LegalZoom.com by 11,415.2% in the first quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company's stock valued at $43,000 after buying an additional 7,534 shares in the last quarter. 81.99% of the stock is currently owned by institutional investors and hedge funds.

LegalZoom.com Price Performance

Shares of LZ stock opened at $5.91 on Thursday. The stock has a market cap of $1.01 billion, a P/E ratio of 98.52, a price-to-earnings-growth ratio of 1.28 and a beta of 1.33. LegalZoom.com has a one year low of $5.28 and a one year high of $12.40. The stock has a fifty day moving average price of $6.19 and a 200 day moving average price of $8.10.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.01). The firm had revenue of $206.78 million during the quarter, compared to the consensus estimate of $202.14 million. LegalZoom.com had a return on equity of 11.53% and a net margin of 1.46%.The firm's revenue for the quarter was up 12.9% compared to the same quarter last year. During the same period last year, the business earned $0.13 earnings per share. Equities research analysts anticipate that LegalZoom.com will post 0.27 EPS for the current year.

LegalZoom.com announced that its Board of Directors has approved a stock buyback plan on Thursday, February 19th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 8.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

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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