LegalZoom.com (NASDAQ:LZ) Stock Price Crosses Below 200-Day Moving Average - Here's What Happened

Key Points

• LegalZoom shares fell below their 200-day moving average, trading as low as $6.54 versus the $6.63 average, and were last at $6.58. The stock was reported down 6.8%, with a market capitalization of approximately $1.13 billion.
• Analyst sentiment remains cautious: six analysts rate the stock Hold and two rate it Sell, producing a consensus “Reduce” rating and a $7.30 price target. JPMorgan also lowered its target to $7.00 while maintaining a Neutral rating.
• LegalZoom’s latest quarterly results slightly exceeded earnings expectations, reporting $0.16 EPS versus $0.15 expected, though revenue of $205.29 million narrowly missed estimates. Insiders sold 577,475 shares worth about $3.38 million during the last quarter, while institutional investors own nearly 82% of the stock.

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report)'s share price passed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $6.63 and traded as low as $6.54. LegalZoom.com shares last traded at $6.58, with a volume of 2,814,008 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on LZ. Weiss Ratings upgraded LegalZoom.com from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, October 14th. Wall Street Zen raised LegalZoom.com from a "hold" rating to a "buy" rating in a report on Saturday, September 26th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $7.00 price objective (down from $8.00) on shares of LegalZoom.com in a report on Thursday, August 6th. Finally, William Blair downgraded shares of LegalZoom.com from an "outperform" rating to a "market perform" rating in a report on Thursday, August 6th. Six analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $7.30.

LegalZoom.com Stock Down 6.8%

The firm has a market cap of $1.13 billion, a price-to-earnings ratio of 73.11 and a beta of 1.20. The stock's 50 day moving average is $6.05 and its 200 day moving average is $6.63.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.15 by $0.01. The firm had revenue of $205.29 million for the quarter, compared to the consensus estimate of $205.83 million. LegalZoom.com's revenue for the quarter was up 6.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.15 EPS. Analysts anticipate that LegalZoom.com, Inc. will post 0.32 earnings per share for the current fiscal year.

Insider Buying and Selling at LegalZoom.com

In other news, CFO Noel Watson sold 416,371 shares of the business's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $5.91, for a total value of $2,460,752.61. Following the sale, the chief financial officer owned 1,491,430 shares of the company's stock, valued at approximately $8,814,351.30. The trade was a 21.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Nicole Miller sold 43,996 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $5.51, for a total value of $242,417.96. Following the completion of the sale, the insider owned 976,932 shares of the company's stock, valued at approximately $5,382,895.32. This trade represents a 4.31% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last quarter, insiders have sold 577,475 shares of company stock worth $3,375,197. 7.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Bank of America Corp DE lifted its holdings in LegalZoom.com by 187.4% in the 1st quarter. Bank of America Corp DE now owns 2,509,891 shares of the company's stock valued at $14,231,000 after acquiring an additional 1,636,487 shares during the last quarter. Principal Financial Group Inc. boosted its position in shares of LegalZoom.com by 579.1% during the 1st quarter. Principal Financial Group Inc. now owns 1,010,914 shares of the company's stock valued at $5,732,000 after purchasing an additional 862,045 shares in the last quarter. Empowered Funds LLC acquired a new position in shares of LegalZoom.com in the 1st quarter worth approximately $2,918,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of LegalZoom.com in the 1st quarter worth approximately $1,923,000. Finally, SEB Asset Management AB acquired a new position in shares of LegalZoom.com in the 1st quarter worth approximately $1,881,000. 81.99% of the stock is owned by institutional investors and hedge funds.

LegalZoom.com Company Profile

LegalZoom.com, Inc is an online platform that provides legal, compliance and tax-related products and services to individuals, families and small businesses. The company's platform is designed to make common legal and administrative processes more accessible through digital tools, guided services and access to independent professionals.

LegalZoom's offerings include business formation services for limited liability companies and corporations, registered-agent services, annual compliance support, business licensing and trademark services.

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