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

Key Points

• LegalZoom.com, Inc. has received an average analyst rating of "Hold" from eight research firms, with one rating sell, five hold, and two buy recommendations.
• The average price target for the stock is $10.50, with recent adjustments including Bank of America's upgrade to a buy rating and a price target increase from $8.00 to $12.00.
• Insiders, including the CFO and a Director, have sold significant shares recently, indicating a 1.60% and 25.74% decrease in their ownership, respectively.

Shares of LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) have been given an average rating of "Hold" by the eight research firms that are currently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and two have issued a buy recommendation on the company. The average 1 year price target among brokerages that have covered the stock in the last year is $10.50.

A number of research firms recently weighed in on LZ. JMP Securities reaffirmed a "market perform" rating on shares of LegalZoom.com in a report on Thursday, May 15th. Wall Street Zen cut shares of LegalZoom.com from a "strong-buy" rating to a "buy" rating in a research report on Friday. Morgan Stanley lifted their price target on LegalZoom.com from $7.00 to $8.00 and gave the company an "underweight" rating in a report on Friday, May 9th. Bank of America upgraded LegalZoom.com from an "underperform" rating to a "buy" rating and boosted their price objective for the stock from $8.00 to $12.00 in a research report on Friday, August 8th. Finally, JPMorgan Chase & Co. raised their target price on LegalZoom.com from $11.00 to $12.00 and gave the company an "overweight" rating in a research report on Monday, May 19th.

Insider Transactions at LegalZoom.com

In other news, CFO Noel Bertram Watson sold 27,319 shares of the firm's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $11.07, for a total transaction of $302,421.33. Following the transaction, the chief financial officer directly owned 1,676,426 shares of the company's stock, valued at approximately $18,558,035.82. This trade represents a 1.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John Francis Murphy sold 24,250 shares of LegalZoom.com stock in a transaction dated 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 owned 69,953 shares in the company, 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. Over the last quarter, insiders sold 109,859 shares of company stock valued at $1,193,100. 5.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On LegalZoom.com

Hedge funds have recently modified their holdings of the company. Wealth Enhancement Advisory Services LLC acquired a new stake in shares of LegalZoom.com in the first quarter valued at $281,000. Ameriprise Financial Inc. raised its position in LegalZoom.com by 30.0% in the fourth quarter. Ameriprise Financial Inc. now owns 322,510 shares of the company's stock worth $2,422,000 after acquiring an additional 74,507 shares in the last quarter. Nuveen Asset Management LLC raised its position in LegalZoom.com by 297.9% in the fourth quarter. Nuveen Asset Management LLC now owns 1,171,584 shares of the company's stock worth $8,799,000 after acquiring an additional 877,125 shares in the last quarter. Graham Capital Management L.P. acquired a new stake in LegalZoom.com in the 4th quarter valued at about $334,000. Finally, Allspring Global Investments Holdings LLC boosted its position in shares of LegalZoom.com by 54.0% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 46,857 shares of the company's stock valued at $403,000 after purchasing an additional 16,430 shares in the last quarter. 81.99% of the stock is currently owned by institutional investors and hedge funds.

LegalZoom.com Price Performance

NASDAQ:LZ opened at $10.32 on Friday. The firm has a market capitalization of $1.86 billion, a P/E ratio of 64.50, a P/E/G ratio of 2.48 and a beta of 1.25. The business has a 50 day simple moving average of $9.73 and a 200 day simple moving average of $9.02. LegalZoom.com has a 12-month low of $6.16 and a 12-month high of $11.93.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $0.15 earnings per share for the quarter, hitting the consensus estimate of $0.15. LegalZoom.com had a return on equity of 20.36% and a net margin of 4.07%.The firm had revenue of $192.51 million for the quarter, compared to analyst estimates of $182.49 million. During the same period last year, the company earned $0.10 earnings per share. The firm's revenue for the quarter 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. Research analysts anticipate that LegalZoom.com will post 0.25 EPS for the current fiscal year.

About LegalZoom.com

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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