LegalZoom.com, Inc. (NASDAQ:LZ) Stock Now Rated “Reduce” by Sell-Side Brokerages

LegalZoom.com, Inc. (NASDAQ:LZ) has been given an average rating of “Reduce” by the nine ratings firms that are presently covering the firm, MarketBeat reports. Four equities research analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $6.70.

Several research analysts have recently issued reports on the stock. William Blair downgraded shares of LegalZoom.com from an “outperform” rating to a “market perform” rating in a research note on Thursday, August 6th. Wall Street Zen downgraded shares of LegalZoom.com from a “buy” rating to a “hold” rating in a research report on Saturday, November 7th. Bank of America lowered shares of LegalZoom.com from a “buy” rating to an “underperform” rating in a report on Thursday, November 5th. Citigroup lowered their price objective on LegalZoom.com from $6.00 to $5.50 and set a “neutral” rating on the stock in a research report on Tuesday. Finally, JPMorgan Chase & Co. cut their target price on LegalZoom.com from $7.00 to $6.00 and set a “neutral” rating on the stock in a research note on Thursday, November 5th.

Insiders Place Their Bets

In other LegalZoom.com news, CFO Noel Watson sold 416,371 shares of LegalZoom.com stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $5.91, for a total value of $2,460,752.61. Following the completion of 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 document filed with the SEC, which is accessible through this hyperlink. Also, insider Nicole Miller sold 43,996 shares of LegalZoom.com stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $5.51, for a total transaction of $242,417.96. Following the completion of the sale, the insider directly 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. Additional details regarding this sale are available in the official SEC disclosure. 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 ninety days, insiders have sold 577,475 shares of company stock worth $3,375,197. Corporate insiders own 7.40% of the company’s stock.

Hedge Funds Weigh In On LegalZoom.com

Several hedge funds and other institutional investors have recently modified their holdings of LZ. State Street Corp raised its holdings in LegalZoom.com by 0.5% in the 3rd quarter. State Street Corp now owns 4,574,691 shares of the company’s stock worth $25,664,000 after purchasing an additional 22,223 shares during the period. Landscape Capital Management L.L.C. grew its holdings in LegalZoom.com by 44.4% during the third quarter. Landscape Capital Management L.L.C. now owns 421,966 shares of the company’s stock valued at $2,367,000 after purchasing an additional 129,673 shares during the period. Voya Investment Management LLC increased its position in LegalZoom.com by 12.3% in the third quarter. Voya Investment Management LLC now owns 608,772 shares of the company’s stock worth $3,415,000 after buying an additional 66,855 shares in the last quarter. Public Sector Pension Investment Board increased its position in LegalZoom.com by 3.3% in the third quarter. Public Sector Pension Investment Board now owns 396,118 shares of the company’s stock worth $2,400,000 after buying an additional 12,790 shares in the last quarter. Finally, Edgestream Partners L.P. bought a new position in shares of LegalZoom.com in the third quarter worth about $8,375,000. 81.99% of the stock is owned by institutional investors.

LegalZoom.com Price Performance

Shares of NASDAQ:LZ opened at $4.82 on Thursday. The business has a fifty day moving average price of $6.06 and a 200-day moving average price of $6.44. The company has a market capitalization of $796.07 million, a PE ratio of 40.17, a PEG ratio of 1.57 and a beta of 1.16. LegalZoom.com has a 1-year low of $4.54 and a 1-year high of $10.51.

LegalZoom.com (NASDAQ:LZ) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.19 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.19. The company had revenue of $195.15 million for the quarter, compared to analysts’ expectations of $193.83 million. LegalZoom.com had a net margin of 2.56% and a return on equity of 23.63%. LegalZoom.com’s revenue was up 2.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.17 EPS. On average, sell-side analysts anticipate that LegalZoom.com will post 0.32 earnings per share for the current fiscal year.

About LegalZoom.com

LegalZoom.com, Inc. provides online legal and compliance services to individuals and small businesses. Its platform helps customers complete common legal tasks through guided tools and access to professional services. Services include forming limited liability companies and corporations, registered agent services, business compliance support, trademark applications, and personal legal documents such as wills and estate plans. The company also offers access to attorneys for legal advice and assistance.