LegalZoom.com (NASDAQ:LZ) Stock Price Up 8.6% - Time to Buy?

Key Points

• LegalZoom.com shares rose 8.6% on Monday, trading as high as $6.38 after closing at $6.00, though volume was far below average.
• Recent analyst sentiment is mixed: multiple firms cut price targets or downgraded the stock, and MarketBeat shows a consensus “Hold” rating with a $9.25 target price.
• The company’s latest earnings beat revenue expectations and posted 12.9% year-over-year revenue growth, but EPS of $0.12 missed estimates; LegalZoom also authorized a $100 million share buyback.

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report)'s share price traded up 8.6% during trading on Monday . The company traded as high as $6.38 and last traded at $6.5160. 211,763 shares were traded during mid-day trading, a decline of 93% from the average session volume of 3,246,404 shares. The stock had previously closed at $6.00.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on LZ. Zacks Research upgraded LegalZoom.com from a "strong sell" rating to a "hold" rating in a research note on Monday, February 23rd. UBS Group reduced their target price on LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, May 7th. JPMorgan Chase & Co. decreased their price target on LegalZoom.com from $14.00 to $11.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 18th. Weiss Ratings downgraded shares of LegalZoom.com from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, April 6th. Finally, Barclays restated an "underweight" rating and issued a $6.00 price objective (down from $9.00) on shares of LegalZoom.com in a research report on Wednesday, March 4th. Three 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. According to data from MarketBeat, LegalZoom.com has a consensus rating of "Hold" and a consensus target price of $9.25.

LegalZoom.com Price Performance

The company has a fifty day moving average price of $6.15 and a 200 day moving average price of $8.04. The company has a market cap of $1.10 billion, a PE ratio of 106.77, a price-to-earnings-growth ratio of 1.24 and a beta of 1.33.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $0.12 earnings per share 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 in the prior year, the business earned $0.13 earnings per share. The company's revenue for the quarter was up 12.9% compared to the same quarter last year. As a group, sell-side analysts predict that LegalZoom.com, Inc. will post 0.27 EPS for the current fiscal year.

LegalZoom.com announced that its board has authorized a share buyback plan on Thursday, February 19th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 8.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, CFO Noel Bertram Watson sold 15,000 shares of the firm's stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $6.96, for a total transaction of $104,400.00. Following the transaction, the chief financial officer directly owned 1,480,860 shares of the company's stock, valued at approximately $10,306,785.60. This trade represents a 1.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Nicole Miller sold 23,325 shares of the business's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $6.63, for a total value of $154,644.75. Following the completion of the sale, the insider owned 813,033 shares of the company's stock, valued at $5,390,408.79. The trade was a 2.79% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 5.90% of the company's stock.

Institutional Investors Weigh In On LegalZoom.com

Hedge funds have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership grew its holdings in shares of LegalZoom.com by 20.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 4,408,170 shares of the company's stock valued at $45,757,000 after purchasing an additional 758,367 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in LegalZoom.com by 165.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,730,487 shares of the company's stock worth $37,044,000 after purchasing an additional 2,324,481 shares during the last quarter. Boston Partners boosted its position in LegalZoom.com by 81.0% during the fourth quarter. Boston Partners now owns 3,623,111 shares of the company's stock valued at $36,054,000 after buying an additional 1,621,125 shares during the period. Franklin Resources Inc. grew its stake in shares of LegalZoom.com by 2.8% during the third quarter. Franklin Resources Inc. now owns 3,327,296 shares of the company's stock valued at $34,537,000 after buying an additional 90,599 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of LegalZoom.com by 3.0% in the first quarter. Dimensional Fund Advisors LP now owns 3,112,895 shares of the company's stock worth $17,650,000 after buying an additional 91,131 shares during the period. 81.99% of the stock is currently owned by 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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