Zacks Research Downgrades LegalZoom.com (NASDAQ:LZ) to Strong Sell

LegalZoom.com (NASDAQ:LZ) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday,Zacks.com reports.

Other equities research analysts also recently issued reports about the company. William Blair raised LegalZoom.com from a “market perform” rating to an “outperform” rating in a research report on Thursday, November 6th. Barclays raised their target price on LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Thursday, November 6th. Wall Street Zen cut LegalZoom.com from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 1st. Morgan Stanley increased their price target on shares of LegalZoom.com from $8.50 to $9.00 and gave the stock an “underweight” rating in a report on Thursday, November 13th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, LegalZoom.com currently has an average rating of “Hold” and an average price target of $11.50.

LegalZoom.com Trading Down 1.9%

NASDAQ:LZ opened at $8.70 on Monday. The company has a market capitalization of $1.54 billion, a P/E ratio of 72.51, a PEG ratio of 1.50 and a beta of 1.22. LegalZoom.com has a 12 month low of $6.47 and a 12 month high of $12.40. The firm has a fifty day simple moving average of $9.72 and a 200-day simple moving average of $9.95.

LegalZoom.com (NASDAQ:LZ) last announced its quarterly earnings data on Wednesday, November 5th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.03). LegalZoom.com had a return on equity of 9.91% and a net margin of 3.05%.The firm had revenue of $190.16 million during the quarter, compared to analysts’ expectations of $183.27 million. During the same quarter in the previous year, the business earned $0.17 earnings per share. The company’s revenue for the quarter was up 12.8% compared to the same quarter last year. Equities analysts forecast that LegalZoom.com will post 0.25 EPS for the current year.

Insider Activity

In other news, CFO Noel Bertram Watson sold 15,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $9.56, for a total value of $143,400.00. Following the transaction, the chief financial officer owned 1,551,582 shares in the company, valued at $14,833,123.92. This trade represents a 0.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Nicole Miller sold 23,506 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $9.63, for a total value of $226,362.78. Following the sale, the insider owned 868,627 shares of the company’s stock, valued at $8,364,878.01. The trade was a 2.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 5.90% of the company’s stock.

Institutional Investors Weigh In On LegalZoom.com

A number of large investors have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership grew its stake in LegalZoom.com by 20.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 4,408,170 shares of the company’s stock valued at $45,757,000 after acquiring an additional 758,367 shares in the last quarter. Franklin Resources Inc. boosted its holdings in shares of LegalZoom.com by 2.8% during the 3rd quarter. Franklin Resources Inc. now owns 3,327,296 shares of the company’s stock worth $34,537,000 after purchasing an additional 90,599 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of LegalZoom.com by 7.8% in the third quarter. Dimensional Fund Advisors LP now owns 2,680,984 shares of the company’s stock valued at $27,833,000 after purchasing an additional 194,080 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in shares of LegalZoom.com by 60.4% in the third quarter. JPMorgan Chase & Co. now owns 2,170,327 shares of the company’s stock valued at $22,528,000 after purchasing an additional 817,462 shares during the last quarter. Finally, Punch & Associates Investment Management Inc. lifted its position in LegalZoom.com by 33.6% during the third quarter. Punch & Associates Investment Management Inc. now owns 2,126,260 shares of the company’s stock worth $22,071,000 after buying an additional 535,290 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.