LegalZoom.com (NASDAQ:LZ) Stock Price Down 7.4% – Here’s Why

LegalZoom.com, Inc. (NASDAQ:LZ) was down 7.4% during mid-day trading on Wednesday . The stock traded as low as $5.70 and last traded at $5.7070. Approximately 182,839 shares were traded during trading, a decline of 94% from the average daily volume of 3,236,018 shares. The stock had previously closed at $6.16.

Analysts Set New Price Targets

A number of research firms have weighed in on LZ. Barclays reissued an “underweight” rating and issued a $6.00 target price (down from $9.00) on shares of LegalZoom.com in a research note on Wednesday, March 4th. UBS Group cut their price target on LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Thursday, May 7th. Weiss Ratings downgraded LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, April 6th. Zacks Research raised LegalZoom.com from a “strong sell” rating to a “hold” rating in a research note on Monday, February 23rd. Finally, JPMorgan Chase & Co. dropped their target price on LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating for the company in a report on Wednesday, February 18th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $9.25.

LegalZoom.com Stock Performance

The firm’s 50 day moving average price is $6.17 and its two-hundred day moving average price is $8.07. The firm has a market cap of $1.01 billion, a PE ratio of 98.02, a PEG ratio of 1.22 and a beta of 1.33.

LegalZoom.com (NASDAQ:LZ) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.01). The firm had revenue of $206.78 million for the quarter, compared to analysts’ expectations of $202.14 million. LegalZoom.com had a net margin of 1.46% and a return on equity of 11.53%. The firm’s quarterly revenue was up 12.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.13 EPS. On average, analysts forecast that LegalZoom.com, Inc. will post 0.27 earnings per share for the current year.

LegalZoom.com declared that its board has approved a share buyback plan on Thursday, February 19th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 8.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at LegalZoom.com

In other LegalZoom.com news, 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 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Noel Bertram Watson sold 15,000 shares of the company’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $6.96, for a total value of $104,400.00. Following the transaction, the chief financial officer owned 1,480,860 shares in the company, valued at $10,306,785.60. This trade represents a 1.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 5.90% of the company’s stock.

Institutional Investors Weigh In On LegalZoom.com

Institutional investors and hedge funds have recently modified their holdings of the company. Parkside Financial Bank & Trust purchased a new position in LegalZoom.com during the 3rd quarter valued at about $40,000. Clearstead Advisors LLC lifted its position in shares of LegalZoom.com by 58.5% during the third quarter. Clearstead Advisors LLC now owns 3,906 shares of the company’s stock worth $41,000 after purchasing an additional 1,441 shares in the last quarter. Osaic Holdings Inc. lifted its position in shares of LegalZoom.com by 477.3% during the second quarter. Osaic Holdings Inc. now owns 4,555 shares of the company’s stock worth $41,000 after purchasing an additional 3,766 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of LegalZoom.com by 976.4% in the second quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company’s stock valued at $41,000 after purchasing an additional 4,140 shares during the period. Finally, PNC Financial Services Group Inc. grew its holdings in shares of LegalZoom.com by 11,415.2% in the first quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock valued at $43,000 after purchasing an additional 7,534 shares in the last quarter. Hedge funds and other institutional investors own 81.99% of the company’s stock.

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.