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

Key Points

• Wall Street Zen downgraded LegalZoom.com from “buy” to “hold,” adding to a mixed analyst backdrop. Overall, the stock now carries an average “Hold” rating and an average price target of $8.25.
• Recent earnings were mixed: LegalZoom reported $0.12 EPS, missing estimates by $0.01, while revenue came in at $206.78 million, above expectations and up 12.9% year over year.
• Insider activity was split, with CEO Jeffrey M. Stibel buying 125,000 shares while insider Nicole Miller sold 19,199 shares. Institutional investors continue to own the majority of the company, at 81.99% of shares.

LegalZoom.com (NASDAQ:LZ - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Monday.

LZ has been the topic of several other research reports. Citigroup cut their price objective on LegalZoom.com from $8.50 to $7.50 and set a "neutral" rating on the stock in a report on Friday, May 22nd. Weiss Ratings reissued a "sell (d+)" rating on shares of LegalZoom.com in a research note on Thursday, July 2nd. JPMorgan Chase & Co. dropped their target price on shares of LegalZoom.com from $11.00 to $8.00 and set an "overweight" rating on the stock in a report on Wednesday, June 24th. Finally, UBS Group cut their price target 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. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $8.25.

LegalZoom.com Price Performance

Shares of LZ stock opened at $7.72 on Monday. LegalZoom.com has a 12-month low of $5.22 and a 12-month high of $12.40. The firm has a fifty day moving average of $6.37 and a 200-day moving average of $6.96. The firm has a market capitalization of $1.33 billion, a price-to-earnings ratio of 128.69, a price-to-earnings-growth ratio of 1.36 and a beta of 1.31.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued 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). The business had revenue of $206.78 million for the quarter, compared to analyst estimates of $202.14 million. LegalZoom.com had a return on equity of 11.53% and a net margin of 1.46%.The business's quarterly revenue was up 12.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.13 EPS. Research analysts expect that LegalZoom.com will post 0.32 earnings per share for the current year.

Insider Activity

In related news, insider Nicole Miller sold 19,199 shares of the stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $6.58, for a total transaction of $126,329.42. Following the completion of the transaction, the insider directly owned 1,119,222 shares in the company, valued at approximately $7,364,480.76. This trade represents a 1.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 bought 125,000 shares of the company's stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average cost of $6.15 per share, for a total transaction of $768,750.00. Following the transaction, the chief executive officer owned 2,955,609 shares in the company, valued at $18,176,995.35. The trade was a 4.42% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 7.40% of the company's stock.

Hedge Funds Weigh In On LegalZoom.com

A number of large investors have recently bought and sold shares of LZ. Osaic Holdings Inc. lifted its position 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 worth $41,000 after purchasing an additional 3,766 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in 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 purchasing an additional 4,140 shares in the last quarter. PNC Financial Services Group Inc. increased its stake in LegalZoom.com by 11,415.2% in the 1st 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 during the last quarter. Parallel Advisors LLC increased its stake in LegalZoom.com by 8,589.8% in the 3rd quarter. Parallel Advisors LLC now owns 5,127 shares of the company's stock valued at $53,000 after buying an additional 5,068 shares during the last quarter. Finally, Cetera Investment Advisers bought a new stake in LegalZoom.com during the 1st quarter worth about $58,000. Institutional investors and hedge funds own 81.99% of the company's stock.

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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