LegalZoom.com (NASDAQ:LZ) Shares Up 7.9% - Time to Buy?

Key Points

• LegalZoom.com shares rose 7.9% on Thursday, trading as high as $7.06, though volume was well below average.
• Analysts remain mixed on the stock: several firms cut price targets, and MarketBeat shows a consensus rating of Hold with an average price target of $8.25.
• The company recently reported revenue growth of 12.9% year over year, but EPS of $0.12 slightly missed estimates; insider activity was also notable, with the CEO buying shares while the CFO sold shares under a 10b5-1 plan.

Shares of LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) were up 7.9% during trading on Thursday . The stock traded as high as $7.06 and last traded at $7.0650. 732,761 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 3,115,215 shares. The stock had previously closed at $6.55.

Analysts Set New Price Targets

Several brokerages have recently weighed in on LZ. Weiss Ratings lowered shares of LegalZoom.com from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. 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 research report on Wednesday, June 24th. UBS Group lowered their price objective on LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Barclays reiterated an "underweight" rating and set a $6.00 target price (down from $9.00) on shares of LegalZoom.com in a research report on Wednesday, March 4th. Finally, Citigroup reduced their price target on LegalZoom.com from $8.50 to $7.50 and set a "neutral" rating for the company in a report on Friday, May 22nd. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, LegalZoom.com presently has a consensus rating of "Hold" and an average price target of $8.25.

LegalZoom.com Price Performance

The stock has a market cap of $1.22 billion, a price-to-earnings ratio of 117.60, a PEG ratio of 1.08 and a beta of 1.30. The company's 50 day moving average is $6.13 and its 200 day moving average is $7.19.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). LegalZoom.com had a net margin of 1.46% and a return on equity of 11.53%. The company had revenue of $206.78 million during the quarter, compared to analysts' expectations of $202.14 million. During the same period last year, the business posted $0.13 earnings per share. The company's quarterly revenue was up 12.9% on a year-over-year basis. Sell-side analysts predict that LegalZoom.com, Inc. will post 0.32 earnings per share for the current year.

Insider Activity at LegalZoom.com

In other LegalZoom.com news, CFO Noel Bertram Watson sold 15,000 shares of the company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $6.45, for a total value of $96,750.00. Following the sale, the chief financial officer 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 stock in a transaction 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 acquisition, the chief executive officer directly owned 2,955,609 shares of the company's stock, valued at $18,176,995.35. The trade was a 4.42% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 5.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On LegalZoom.com

Institutional investors and hedge funds have recently made changes to their positions in the business. Osaic Holdings Inc. raised its position in LegalZoom.com by 477.3% during the second quarter. Osaic Holdings Inc. now owns 4,555 shares of the company's stock worth $41,000 after acquiring an additional 3,766 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of LegalZoom.com by 976.4% during 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 in the last quarter. PNC Financial Services Group Inc. raised its position in shares of LegalZoom.com by 11,415.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company's stock worth $43,000 after purchasing an additional 7,534 shares during the last quarter. Parallel Advisors LLC raised its position in shares of LegalZoom.com by 8,589.8% during the 3rd quarter. Parallel Advisors LLC now owns 5,127 shares of the company's stock worth $53,000 after purchasing an additional 5,068 shares during the last quarter. Finally, Cetera Investment Advisers purchased a new stake in LegalZoom.com in the 1st quarter valued at approximately $58,000. 81.99% of the stock is currently owned by hedge funds and other institutional investors.

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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