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

Key Points

• Analyst sentiment is mixed: Nine brokerages collectively rate LegalZoom.com “Hold,” split evenly among three buy, three hold and three sell recommendations. The average 12-month price target is $8.25.
• Recent analysts have generally lowered price targets, including Citigroup to $7.50, UBS to $7.00 and JPMorgan to $8.00, while maintaining neutral or overweight ratings.
• LegalZoom reported quarterly revenue of $206.78 million, up 12.9% year over year and above estimates, but earnings per share of $0.12 narrowly missed consensus by $0.01. The stock opened at $7.56, while institutional investors own nearly 82% of shares.

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) has been given a consensus recommendation of "Hold" by the nine brokerages that are presently covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a sell recommendation, three have given a hold recommendation and three have issued a buy recommendation on the company. The average 12-month price target among brokers that have covered the stock in the last year is $8.25.

LZ has been the subject of a number of analyst reports. Wall Street Zen upgraded LegalZoom.com from a "hold" rating to a "buy" rating in a research report on Tuesday. Citigroup decreased their price target on LegalZoom.com from $8.50 to $7.50 and set a "neutral" rating for the company in a research note on Friday, May 22nd. UBS Group lowered their price target on LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Weiss Ratings restated a "sell (d+)" rating on shares of LegalZoom.com in a research note on Thursday, July 2nd. Finally, JPMorgan Chase & Co. reduced their price objective on shares of LegalZoom.com from $11.00 to $8.00 and set an "overweight" rating for the company in a report on Wednesday, June 24th.

Insider Buying and Selling at LegalZoom.com

In other news, CFO Noel Bertram Watson sold 15,000 shares of the company'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 value of $96,750.00. Following the completion of the sale, the chief financial officer directly owned 2,041,847 shares of the company's stock, valued at approximately $13,169,913.15. This represents a 0.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible 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, insider Nicole Miller sold 19,199 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $6.58, for a total transaction of $126,329.42. Following the completion of the transaction, the insider owned 1,119,222 shares of the company's stock, valued at $7,364,480.76. This trade represents a 1.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. 7.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On LegalZoom.com

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LZ. EP Wealth Advisors LLC increased its position in shares of LegalZoom.com by 2.8% during the 2nd quarter. EP Wealth Advisors LLC now owns 41,352 shares of the company's stock valued at $368,000 after purchasing an additional 1,139 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in shares of LegalZoom.com by 37.2% in the fourth quarter. EverSource Wealth Advisors LLC now owns 5,179 shares of the company's stock valued at $51,000 after buying an additional 1,403 shares during the period. Prelude Capital Management LLC boosted its stake in LegalZoom.com by 11.6% during the third quarter. Prelude Capital Management LLC now owns 14,185 shares of the company's stock valued at $147,000 after buying an additional 1,470 shares in the last quarter. Chase Investment Counsel Corp grew its holdings in LegalZoom.com by 12.3% during the fourth quarter. Chase Investment Counsel Corp now owns 13,601 shares of the company's stock worth $135,000 after acquiring an additional 1,489 shares during the period. Finally, The Manufacturers Life Insurance Company raised its position in LegalZoom.com by 2.9% in the fourth quarter. The Manufacturers Life Insurance Company now owns 59,862 shares of the company's stock worth $594,000 after acquiring an additional 1,705 shares in the last quarter. Institutional investors own 81.99% of the company's stock.

LegalZoom.com Trading Up 5.3%

LZ opened at $7.56 on Tuesday. The business's 50 day moving average is $6.51 and its 200-day moving average is $6.84. The stock has a market cap of $1.30 billion, a PE ratio of 126.02, a price-to-earnings-growth ratio of 1.27 and a beta of 1.31. LegalZoom.com has a twelve month low of $5.22 and a twelve month high of $12.40.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $0.12 earnings per share (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 business had revenue of $206.78 million for the quarter, compared to analyst estimates of $202.14 million. During the same quarter in the prior year, the firm posted $0.13 earnings per share. The business's quarterly revenue was up 12.9% on a year-over-year basis. As a group, analysts forecast that LegalZoom.com will post 0.32 EPS for the current year.

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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