LegalZoom.com (NASDAQ:LZ) Downgraded by Wall Street Zen to "Buy"

Key Points

• LegalZoom.com has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, signaling a shift in analyst sentiment regarding the stock.
• Citigroup and JPMorgan Chase & Co. recently raised their price targets for LegalZoom.com, with targets set at $12.00, reflecting positive outlook among some analysts despite the downgrade.
• LegalZoom.com shares saw a decline of 4.9%, and the company reported a year-over-year revenue increase of 8.5% for the most recent quarter.

LegalZoom.com (NASDAQ:LZ - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Friday.

A number of other equities analysts have also recently weighed in on the stock. Citigroup lifted their price target on shares of LegalZoom.com from $10.00 to $12.00 and gave the stock a "neutral" rating in a research report on Monday, August 25th. JMP Securities restated a "market perform" rating on shares of LegalZoom.com in a research note on Thursday, May 15th. Barclays lifted their target price on shares of LegalZoom.com from $9.00 to $10.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 12th. JPMorgan Chase & Co. boosted their price objective on shares of LegalZoom.com from $11.00 to $12.00 and gave the company an "overweight" rating in a report on Monday, May 19th. Finally, Bank of America raised shares of LegalZoom.com from an "underperform" rating to a "buy" rating and boosted their price objective for the company from $8.00 to $12.00 in a report on Friday, August 8th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $10.50.

LegalZoom.com Stock Down 4.9%

Shares of LZ opened at $10.32 on Friday. The stock has a market cap of $1.86 billion, a price-to-earnings ratio of 64.50, a P/E/G ratio of 2.48 and a beta of 1.25. LegalZoom.com has a 12 month low of $6.16 and a 12 month high of $11.93. The company has a 50-day moving average price of $9.73 and a two-hundred day moving average price of $9.02.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported $0.15 earnings per share for the quarter, hitting the consensus estimate of $0.15. The company had revenue of $192.51 million during the quarter, compared to analyst estimates of $182.49 million. LegalZoom.com had a net margin of 4.07% and a return on equity of 20.36%. The company's revenue was up 8.5% on a year-over-year basis. During the same quarter last year, the business posted $0.10 earnings per share. LegalZoom.com has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities research analysts expect that LegalZoom.com will post 0.25 EPS for the current fiscal year.

Insider Activity

In other news, Director John Francis Murphy sold 24,250 shares of the stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $10.57, for a total value of $256,322.50. Following the completion of the sale, the director owned 69,953 shares in the company, valued at $739,403.21. This represents a 25.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Nicole Miller sold 25,154 shares of the firm's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $10.82, for a total transaction of $272,166.28. Following the sale, the insider owned 960,032 shares of the company's stock, valued at $10,387,546.24. This trade represents a 2.55% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 109,859 shares of company stock worth $1,193,100 over the last quarter. Insiders own 5.90% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in LZ. Quantbot Technologies LP purchased a new stake in shares of LegalZoom.com in the 1st quarter worth about $29,000. Osaic Holdings Inc. lifted its stake in LegalZoom.com by 477.3% during the 2nd quarter. Osaic Holdings Inc. now owns 4,555 shares of the company's stock valued at $41,000 after acquiring an additional 3,766 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of LegalZoom.com by 976.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company's stock worth $41,000 after purchasing an additional 4,140 shares during the period. State of Wyoming lifted its stake in shares of LegalZoom.com by 42.1% in the 4th quarter. State of Wyoming now owns 8,347 shares of the company's stock worth $63,000 after purchasing an additional 2,475 shares during the period. Finally, Canada Pension Plan Investment Board purchased a new stake in LegalZoom.com in the 2nd quarter worth approximately $78,000. 81.99% of the stock is owned by hedge funds and other institutional investors.

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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