LegalZoom.com (NASDAQ:LZ) Trading Down 4.7% - Here's Why

Key Points

• LegalZoom.com shares fell 4.7% to $10.57, trading at a significantly lower volume of 657,405 shares compared to its average daily volume of 2,069,081 shares.
• Analyst ratings show a mixed outlook for LegalZoom.com, with Bank of America upgrading it to a "buy" and a consensus target price of $9.92, while various analysts maintain hold or underweight ratings.
• The company reported a quarterly earnings per share of $0.15, meeting expectations, with revenues increasing by 8.5% year-over-year to $192.51 million.

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) dropped 4.7% on Tuesday . The company traded as low as $10.74 and last traded at $10.57. Approximately 657,405 shares were traded during trading, a decline of 68% from the average daily volume of 2,069,081 shares. The stock had previously closed at $11.09.

Analyst Upgrades and Downgrades

LZ has been the topic of several research reports. Bank of America raised LegalZoom.com from an "underperform" rating to a "buy" rating and upped their target price for the company from $8.00 to $12.00 in a research report on Friday. Barclays upped their target price on LegalZoom.com from $9.00 to $10.00 and gave the company an "equal weight" rating in a research report on Tuesday. Morgan Stanley upped their target price on LegalZoom.com from $7.00 to $8.00 and gave the company an "underweight" rating in a research report on Friday, May 9th. Wall Street Zen raised LegalZoom.com from a "buy" rating to a "strong-buy" rating in a research report on Friday, May 30th. Finally, JMP Securities reaffirmed a "market perform" rating on shares of LegalZoom.com in a research report on Thursday, May 15th. One analyst has rated the stock with a sell rating, five have given a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $9.92.

LegalZoom.com Trading Down 4.0%

The company has a market cap of $1.92 billion, a P/E ratio of 66.54, a PEG ratio of 4.68 and a beta of 1.23. The stock's 50-day moving average price is $8.99 and its 200-day moving average price is $8.79.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.15 earnings per share for the quarter, meeting the consensus estimate of $0.15. LegalZoom.com had a net margin of 4.07% and a return on equity of 23.97%. The business had revenue of $192.51 million for the quarter, compared to analysts' expectations of $182.49 million. During the same quarter last year, the firm earned $0.10 EPS. The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. On average, research analysts anticipate that LegalZoom.com, Inc. will post 0.25 earnings per share for the current fiscal year.

Hedge Funds Weigh In On LegalZoom.com

Hedge funds have recently modified their holdings of the company. Ararat Capital Management LP raised its holdings in shares of LegalZoom.com by 26.6% in the 4th quarter. Ararat Capital Management LP now owns 3,248,482 shares of the company's stock worth $24,396,000 after purchasing an additional 682,678 shares during the period. Franklin Resources Inc. raised its holdings in shares of LegalZoom.com by 0.4% in the 2nd quarter. Franklin Resources Inc. now owns 3,236,697 shares of the company's stock worth $28,839,000 after purchasing an additional 12,171 shares during the period. Jacobs Levy Equity Management Inc. raised its holdings in shares of LegalZoom.com by 8.2% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 2,186,816 shares of the company's stock worth $18,828,000 after purchasing an additional 166,385 shares during the period. Nuveen LLC bought a new stake in shares of LegalZoom.com in the 1st quarter worth approximately $18,585,000. Finally, Dimensional Fund Advisors LP raised its holdings in shares of LegalZoom.com by 2.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,396,523 shares of the company's stock worth $10,489,000 after purchasing an additional 32,075 shares during the period. 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.

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