Citigroup Issues Positive Forecast for LegalZoom.com (NASDAQ:LZ) Stock Price

Key Points

• Citigroup has raised its price target for LegalZoom.com (NASDAQ:LZ) from $10.00 to $12.00, suggesting an upside potential of 8.04% from the stock's previous close.
• LegalZoom recently reported earnings of $0.15 EPS for the quarter, meeting analysts' expectations with a revenue increase of 8.5% year-over-year.
• Insider selling was noted, with Director John Francis Murphy and CFO Noel Bertram Watson reducing their holdings, indicating potential concerns among company executives.

LegalZoom.com (NASDAQ:LZ - Free Report) had its target price increased by Citigroup from $10.00 to $12.00 in a report issued on Monday morning,Benzinga reports. Citigroup currently has a neutral rating on the stock.

A number of other research firms have also weighed in on LZ. Bank of America raised LegalZoom.com from an "underperform" rating to a "buy" rating and boosted their target price for the stock from $8.00 to $12.00 in a report on Friday, August 8th. Barclays upped their price objective on shares of LegalZoom.com from $9.00 to $10.00 and gave the company an "equal weight" rating in a report on Tuesday, August 12th. JPMorgan Chase & Co. raised their target price on shares of LegalZoom.com from $11.00 to $12.00 and gave the stock an "overweight" rating in a research note on Monday, May 19th. Wall Street Zen raised shares of LegalZoom.com from a "buy" rating to a "strong-buy" rating in a report on Friday, May 30th. Finally, JMP Securities reissued a "market perform" rating on shares of LegalZoom.com in a report on Thursday, May 15th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $10.50.

LegalZoom.com Trading Down 0.6%

Shares of LegalZoom.com stock traded down $0.07 during trading on Monday, hitting $11.08. 1,727,589 shares of the stock were exchanged, compared to its average volume of 3,141,987. The company has a fifty day moving average price of $9.52 and a 200-day moving average price of $8.97. The stock has a market capitalization of $2.00 billion, a price-to-earnings ratio of 69.25, a price-to-earnings-growth ratio of 2.55 and a beta of 1.23. LegalZoom.com has a 1-year low of $6.16 and a 1-year high of $11.93.

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

Insiders Place Their Bets

In other LegalZoom.com news, insider Nicole Miller sold 25,154 shares of the business'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 completion of the transaction, the insider owned 960,032 shares of the company's stock, valued at approximately $10,387,546.24. The trade was a 2.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Francis Murphy sold 24,250 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $10.57, for a total transaction of $256,322.50. Following the completion of the sale, the director owned 69,953 shares in the company, valued at approximately $739,403.21. The trade was a 25.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 109,859 shares of company stock worth $1,193,100 over the last three months. Insiders own 5.90% of the company's stock.

Hedge Funds Weigh In On LegalZoom.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in LZ. Thrivent Financial for Lutherans acquired a new stake in LegalZoom.com in the second quarter valued at approximately $133,000. State of Wyoming boosted its holdings in shares of LegalZoom.com by 112.4% during the 2nd quarter. State of Wyoming now owns 50,351 shares of the company's stock valued at $449,000 after acquiring an additional 26,644 shares in the last quarter. Caxton Associates LLP grew its position in LegalZoom.com by 147.0% during the 2nd quarter. Caxton Associates LLP now owns 110,895 shares of the company's stock worth $988,000 after acquiring an additional 65,994 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in LegalZoom.com by 299.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 21,266 shares of the company's stock worth $189,000 after purchasing an additional 15,947 shares in the last quarter. Finally, Captrust Financial Advisors raised its position in LegalZoom.com by 179.5% in the second quarter. Captrust Financial Advisors now owns 55,888 shares of the company's stock valued at $498,000 after purchasing an additional 35,894 shares during the last quarter. Institutional investors own 81.99% of the company's stock.

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.