LegalZoom.com (NASDAQ:LZ) Reaches New 52-Week Low - What's Next?

Key Points

• 52-week low: LegalZoom shares fell to $5.43 (last $5.405) on heavy volume, leaving the company with a market cap of about $915.6M and trading below its 50- and 200-day moving averages ($6.62 and $8.74).
• Analysts have trimmed targets and ratings recently — multiple downgrades and cuts result in a consensus Hold rating with an average price target of $9.42 (3 Buy / 4 Hold / 3 Sell).
• Financially, LegalZoom missed quarterly EPS by $0.01 despite revenue rising 17.7% YoY; the board approved a $100M share buyback (up to 8.1% of shares) even as insiders sold stock in late February.

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report)'s stock price hit a new 52-week low during trading on Friday . The stock traded as low as $5.43 and last traded at $5.4050, with a volume of 452439 shares traded. The stock had previously closed at $5.66.

Analyst Ratings Changes

LZ has been the subject of several research analyst reports. Barclays restated an "underweight" rating and set a $6.00 price target (down from $9.00) on shares of LegalZoom.com in a research note on Wednesday, March 4th. UBS Group dropped their price target on LegalZoom.com from $12.00 to $8.00 and set a "neutral" rating for the company in a research note on Friday, February 20th. Weiss Ratings lowered LegalZoom.com from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday. JPMorgan Chase & Co. dropped their price target on LegalZoom.com from $14.00 to $11.00 and set an "overweight" rating for the company in a research note on Wednesday, February 18th. Finally, Zacks Research raised LegalZoom.com from a "strong sell" rating to a "hold" rating in a research report on Monday, February 23rd. Three analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, LegalZoom.com has an average rating of "Hold" and a consensus price target of $9.42.

LegalZoom.com Price Performance

The stock has a market cap of $915.61 million, a PE ratio of 66.07, a P/E/G ratio of 1.28 and a beta of 1.30. The business has a fifty day moving average of $6.62 and a 200 day moving average of $8.74.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The company reported $0.17 EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.01). The business had revenue of $190.27 million during the quarter, compared to analysts' expectations of $184.85 million. LegalZoom.com had a net margin of 2.04% and a return on equity of 6.35%. The company's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.19 EPS. On average, equities research analysts expect that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

LegalZoom.com announced that its board has approved a stock repurchase plan on Thursday, February 19th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 8.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Insider Activity at LegalZoom.com

In other news, insider Nicole Miller sold 23,325 shares of LegalZoom.com stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $6.63, for a total transaction of $154,644.75. Following the transaction, the insider directly owned 813,033 shares in the company, valued at approximately $5,390,408.79. This trade represents a 2.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Noel Bertram Watson sold 15,000 shares of LegalZoom.com stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $6.96, for a total value of $104,400.00. Following the transaction, the chief financial officer owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. This trade represents a 1.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 5.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On LegalZoom.com

Hedge funds have recently bought and sold shares of the business. Exchange Traded Concepts LLC purchased a new stake in LegalZoom.com in the 3rd quarter worth about $34,000. Parkside Financial Bank & Trust purchased a new stake in LegalZoom.com in the 3rd quarter worth about $40,000. Clearstead Advisors LLC lifted its stake in LegalZoom.com by 58.5% in the 3rd quarter. Clearstead Advisors LLC now owns 3,906 shares of the company's stock worth $41,000 after acquiring an additional 1,441 shares in the last quarter. Osaic Holdings Inc. lifted its stake in LegalZoom.com by 477.3% in the 2nd quarter. Osaic Holdings Inc. now owns 4,555 shares of the company's stock worth $41,000 after acquiring an additional 3,766 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in 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 acquiring an additional 4,140 shares in the last quarter. 81.99% of the stock is owned by hedge funds and other institutional investors.

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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