LegalZoom.com (NASDAQ:LZ) Stock Price Expected to Rise, Citigroup Analyst Says

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 - Get Free Report) had its price target lifted by research analysts at Citigroup from $10.00 to $12.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has a "neutral" rating on the stock. Citigroup's target price would indicate a potential upside of 8.04% from the stock's previous close.

LZ has been the topic of a number of other research reports. Bank of America raised LegalZoom.com from an "underperform" rating to a "buy" rating and raised their price target for the stock from $8.00 to $12.00 in a report on Friday, August 8th. JMP Securities reissued a "market perform" rating on shares of LegalZoom.com in a report on Thursday, May 15th. Barclays raised their price target on LegalZoom.com from $9.00 to $10.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 12th. Wall Street Zen upgraded shares of LegalZoom.com from a "buy" rating to a "strong-buy" rating in a research report on Friday, May 30th. Finally, JPMorgan Chase & Co. raised their price objective on shares of LegalZoom.com from $11.00 to $12.00 and gave the company an "overweight" rating in a research report on Monday, May 19th. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, LegalZoom.com presently has an average rating of "Hold" and an average price target of $10.50.

LegalZoom.com Stock Performance

Shares of LZ stock traded up $0.1270 during trading hours on Monday, reaching $11.1070. The company had a trading volume of 878,554 shares, compared to its average volume of 2,084,050. The company has a market capitalization of $2.00 billion, a price-to-earnings ratio of 69.47, a PEG ratio of 2.51 and a beta of 1.23. LegalZoom.com has a 12-month low of $6.16 and a 12-month high of $11.93. The stock has a fifty day moving average of $9.27 and a 200-day moving average of $8.90.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.15 EPS for the quarter, hitting analysts' consensus estimates of $0.15. LegalZoom.com had a return on equity of 20.36% and a net margin of 4.07%.The company had revenue of $192.51 million for the quarter, compared to analysts' expectations of $182.49 million. During the same period in the prior year, the firm earned $0.10 earnings per share. The firm's revenue was up 8.5% compared to the same quarter last year. LegalZoom.com has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, analysts forecast that LegalZoom.com will post 0.25 EPS for the current year.

Insider Buying and Selling

In related news, Director John Francis Murphy sold 24,250 shares of the company's stock in a transaction 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 directly owned 69,953 shares of the company's stock, valued at approximately $739,403.21. This represents a 25.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Noel Bertram Watson sold 15,000 shares of the company's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $10.81, for a total transaction of $162,150.00. Following the sale, the chief financial officer directly owned 1,721,881 shares of the company's stock, valued at approximately $18,613,533.61. This trade represents a 0.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 64,404 shares of company stock valued at $690,639. Company insiders own 5.90% of the company's stock.

Institutional Investors Weigh In On LegalZoom.com

Several institutional investors and hedge funds have recently bought and sold shares of LZ. Brighton Jones LLC acquired a new stake in LegalZoom.com during the fourth quarter worth about $185,000. Wells Fargo & Company MN raised its stake in LegalZoom.com by 34.1% during the fourth quarter. Wells Fargo & Company MN now owns 59,884 shares of the company's stock worth $450,000 after acquiring an additional 15,232 shares during the period. Barclays PLC increased its stake in shares of LegalZoom.com by 13.5% in the fourth quarter. Barclays PLC now owns 255,180 shares of the company's stock valued at $1,916,000 after purchasing an additional 30,398 shares during the period. Mariner LLC increased its stake in shares of LegalZoom.com by 5.6% in the fourth quarter. Mariner LLC now owns 44,638 shares of the company's stock valued at $335,000 after purchasing an additional 2,348 shares during the period. Finally, Marshall Wace LLP acquired a new stake in shares of LegalZoom.com in the fourth quarter valued at approximately $173,000. Institutional investors and hedge funds own 81.99% of the company's stock.

LegalZoom.com Company Profile

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.

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