LegalZoom.com (NASDAQ:LZ) Sees Strong Trading Volume - Still a Buy?

Key Points

• LegalZoom shares traded actively, with about 2.08 million shares changing hands and the stock rising to $5.93 from a prior close of $5.66.
• Analyst sentiment remains cautious: one analyst rates the stock Buy, five Hold, and three Sell, resulting in a consensus “Reduce” rating and an average price target of $8.08.
• The company slightly exceeded quarterly EPS expectations at $0.16 versus $0.15, while revenue reached $205.29 million and grew 6.6% year over year; CEO Jeffrey Stibel also purchased 125,000 shares.

Shares of LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) saw unusually-strong trading volume on Friday . 2,075,915 shares were traded during mid-day trading, a decline of 33% from the previous session's volume of 3,085,851 shares.The stock last traded at $5.9310 and had previously closed at $5.66.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Citigroup decreased their price target on shares of LegalZoom.com from $8.50 to $7.50 and set a "neutral" rating for the company in a report on Friday, May 22nd. Wall Street Zen upgraded LegalZoom.com from a "hold" rating to a "buy" rating in a research note on Tuesday, July 28th. Weiss Ratings reissued a "sell (d+)" rating on shares of LegalZoom.com in a research report on Thursday, July 2nd. UBS Group cut their price objective on LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, May 7th. Finally, JPMorgan Chase & Co. restated a "neutral" rating and set a $7.00 target price (down from $8.00) on shares of LegalZoom.com in a research note on Thursday. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Reduce" and an average price target of $8.08.

LegalZoom.com Stock Performance

The stock has a market capitalization of $995.23 million, a price-to-earnings ratio of 64.23, a PEG ratio of 1.35 and a beta of 1.28. The company's 50 day moving average is $6.75 and its 200 day moving average is $6.73.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.15 by $0.01. The firm had revenue of $205.29 million during the quarter, compared to the consensus estimate of $205.83 million. LegalZoom.com had a net margin of 2.13% and a return on equity of 14.78%. The business's revenue was up 6.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.15 EPS. On average, equities research analysts anticipate that LegalZoom.com, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Activity at LegalZoom.com

In other news, CEO Jeffrey M. Stibel purchased 125,000 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were purchased at an average cost of $6.15 per share, for a total transaction of $768,750.00. Following the completion of the purchase, the chief executive officer directly owned 2,955,609 shares of the company's stock, valued at approximately $18,176,995.35. The trade was a 4.42% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, 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 transaction, the chief financial officer directly owned 2,041,847 shares of the company's stock, valued at approximately $13,169,913.15. This trade represents a 0.73% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 Trading of LegalZoom.com

Several institutional investors have recently modified their holdings of LZ. Osaic Holdings Inc. lifted its position in 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 during the period. EverSource Wealth Advisors LLC increased its holdings in LegalZoom.com by 976.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company's stock valued at $41,000 after buying an additional 4,140 shares during the period. PNC Financial Services Group Inc. increased its holdings 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 period. Parallel Advisors LLC raised its stake in shares of 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 in the last quarter. Finally, Cetera Investment Advisers acquired a new position in shares of LegalZoom.com in the 1st quarter valued at $58,000. Institutional investors and hedge funds own 81.99% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source