Wall Street Zen Upgrades LegalZoom.com (NASDAQ:LZ) to Strong-Buy

Key Points

• Wall Street Zen upgraded LegalZoom.com to a "strong-buy" rating, reflecting increased confidence in the company's stock performance.
• Several analysts have raised their price targets for LegalZoom.com, with Bank of America increasing it from $8.00 to $12.00 and JPMorgan Chase raising it from $12.00 to $14.00.
• Despite recent upgrades, the stock has a consensus rating of "Hold" with an average price target of $10.83, indicating mixed feelings among analysts about its future prospects.

LegalZoom.com (NASDAQ:LZ - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Friday.

Other research analysts have also issued reports about the stock. Bank of America upgraded shares of LegalZoom.com from an "underperform" rating to a "buy" rating and increased their price target for the stock from $8.00 to $12.00 in a research note on Friday, August 8th. Barclays increased their price target on shares of LegalZoom.com from $9.00 to $10.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 12th. Citigroup increased their price target on shares of LegalZoom.com from $10.00 to $12.00 and gave the stock a "neutral" rating in a research note on Monday, August 25th. Weiss Ratings reiterated a "hold (c-)" rating on shares of LegalZoom.com in a research note on Saturday, September 27th. Finally, JPMorgan Chase & Co. raised their price objective on shares of LegalZoom.com from $12.00 to $14.00 and gave the company an "overweight" rating in a research note on Monday, September 8th. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $10.83.

LegalZoom.com Price Performance

Shares of NASDAQ:LZ remained flat at $10.24 on Friday. 1,711,041 shares of the stock traded hands, compared to its average volume of 2,227,094. The stock's 50-day moving average is $10.37 and its 200-day moving average is $9.18. LegalZoom.com has a 12-month low of $6.33 and a 12-month high of $11.93. The company has a market cap of $1.85 billion, a price-to-earnings ratio of 64.00, a price-to-earnings-growth ratio of 3.14 and a beta of 1.23.

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

Insider Activity

In other LegalZoom.com news, insider Nicole Miller sold 25,154 shares of the company's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $10.82, for a total transaction of $272,166.28. Following the completion of the sale, the insider directly owned 960,032 shares of the company's stock, valued at approximately $10,387,546.24. This represents a 2.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John Francis Murphy sold 24,250 shares of the company'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 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 ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 109,859 shares of company stock valued at $1,193,100 in the last 90 days. 5.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On LegalZoom.com

Several large investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. lifted its holdings in LegalZoom.com by 477.3% during the second quarter. Osaic Holdings Inc. now owns 4,555 shares of the company's stock valued at $41,000 after purchasing an additional 3,766 shares in the last quarter. Thrivent Financial for Lutherans purchased a new position in LegalZoom.com during the second quarter valued at approximately $133,000. State of Wyoming lifted its holdings in LegalZoom.com by 112.4% during the second quarter. State of Wyoming now owns 50,351 shares of the company's stock valued at $449,000 after purchasing an additional 26,644 shares in the last quarter. Caxton Associates LLP lifted its holdings in LegalZoom.com by 147.0% during the second quarter. Caxton Associates LLP now owns 110,895 shares of the company's stock valued at $988,000 after purchasing an additional 65,994 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its holdings in LegalZoom.com by 299.8% during the second quarter. Tower Research Capital LLC TRC now owns 21,266 shares of the company's stock valued at $189,000 after purchasing an additional 15,947 shares in the last quarter. Hedge funds and other 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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