LegalZoom.com (NASDAQ:LZ) Sets New 1-Year Low – Here’s What Happened

LegalZoom.com, Inc. (NASDAQ:LZ)’s share price reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $6.01 and last traded at $5.9150, with a volume of 733933 shares changing hands. The stock had previously closed at $6.28.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. UBS Group reduced their target price on shares of LegalZoom.com from $12.00 to $8.00 and set a “neutral” rating on the stock in a research report on Friday, February 20th. Weiss Ratings reiterated a “hold (c)” rating on shares of LegalZoom.com in a report on Monday, December 29th. Zacks Research raised LegalZoom.com from a “strong sell” rating to a “hold” rating in a research note on Monday, February 23rd. JPMorgan Chase & Co. decreased their target price on LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating for the company in a research report on Wednesday, February 18th. Finally, Barclays reiterated an “underweight” rating and issued a $6.00 target price (down from $9.00) on shares of LegalZoom.com in a report on Wednesday, March 4th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, LegalZoom.com currently has an average rating of “Hold” and an average price target of $9.42.

LegalZoom.com Stock Down 4.6%

The company has a market cap of $1.04 billion, a PE ratio of 74.83, a price-to-earnings-growth ratio of 1.35 and a beta of 1.25. The firm has a 50 day simple moving average of $7.45 and a 200-day simple moving average of $9.15.

LegalZoom.com (NASDAQ:LZ) last released its quarterly earnings results on Thursday, February 19th. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.01). LegalZoom.com had a net margin of 2.04% and a return on equity of 6.35%. The firm had revenue of $190.27 million for the quarter, compared to analysts’ expectations of $184.85 million. During the same period in the previous year, the company posted $0.19 earnings per share. The business’s quarterly revenue was up 17.7% compared to the same quarter last year. As a group, equities analysts anticipate that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

LegalZoom.com declared that its Board of Directors has authorized a stock buyback program on Thursday, February 19th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 8.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Transactions at LegalZoom.com

In other LegalZoom.com news, CFO Noel Bertram Watson sold 15,000 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $6.96, for a total value of $104,400.00. Following the completion of the sale, the chief financial officer owned 1,480,860 shares of the company’s stock, valued at approximately $10,306,785.60. This trade represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Nicole Miller sold 23,325 shares of the business’s stock in a transaction dated 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 in the company, valued at $5,390,408.79. The trade was a 2.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 5.90% of the company’s stock.

Institutional Trading of LegalZoom.com

Institutional investors have recently bought and sold shares of the stock. EP Wealth Advisors LLC boosted its holdings in shares of LegalZoom.com by 2.8% during the 2nd quarter. EP Wealth Advisors LLC now owns 41,352 shares of the company’s stock worth $368,000 after purchasing an additional 1,139 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of LegalZoom.com by 37.2% in the fourth quarter. EverSource Wealth Advisors LLC now owns 5,179 shares of the company’s stock valued at $51,000 after purchasing an additional 1,403 shares during the last quarter. Clearstead Advisors LLC lifted its position in 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 buying an additional 1,441 shares in the last quarter. Prelude Capital Management LLC lifted its position in LegalZoom.com by 11.6% during the third quarter. Prelude Capital Management LLC now owns 14,185 shares of the company’s stock worth $147,000 after buying an additional 1,470 shares in the last quarter. Finally, Chase Investment Counsel Corp boosted its stake in LegalZoom.com by 12.3% during the fourth quarter. Chase Investment Counsel Corp now owns 13,601 shares of the company’s stock worth $135,000 after buying an additional 1,489 shares during the last quarter. 81.99% of the stock is currently owned by institutional investors and hedge funds.

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.