LegalZoom.com (NASDAQ:LZ) Stock Price Down 8.5% After Analyst Downgrade

LegalZoom.com, Inc. (NASDAQ:LZGet Rating)’s stock price dropped 8.5% during mid-day trading on Thursday after Morgan Stanley lowered their price target on the stock from $9.00 to $7.00. Morgan Stanley currently has an underweight rating on the stock. LegalZoom.com traded as low as $8.23 and last traded at $8.26. Approximately 54,684 shares changed hands during mid-day trading, a decline of 95% from the average daily volume of 1,018,016 shares. The stock had previously closed at $9.03.

A number of other research analysts have also recently issued reports on LZ. JMP Securities cut shares of LegalZoom.com from an “outperform” rating to a “market perform” rating in a research note on Tuesday, September 6th. Barclays dropped their price objective on shares of LegalZoom.com to $16.00 in a research report on Monday, August 15th. Finally, Credit Suisse Group dropped their price objective on shares of LegalZoom.com from $24.00 to $19.00 and set an “outperform” rating for the company in a research report on Friday, August 12th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, LegalZoom.com has a consensus rating of “Hold” and a consensus price target of $19.88.

Insiders Place Their Bets

In other LegalZoom.com news, CEO Daniel A. Wernikoff sold 15,977 shares of LegalZoom.com stock in a transaction on Wednesday, August 17th. The shares were sold at an average price of $11.46, for a total transaction of $183,096.42. Following the completion of the sale, the chief executive officer now owns 441,159 shares of the company’s stock, valued at approximately $5,055,682.14. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In other news, CEO Daniel A. Wernikoff sold 15,977 shares of the business’s stock in a transaction on Wednesday, August 17th. The shares were sold at an average price of $11.46, for a total value of $183,096.42. Following the completion of the transaction, the chief executive officer now owns 441,159 shares of the company’s stock, valued at approximately $5,055,682.14. 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 23,643 shares of the business’s stock in a transaction on Wednesday, August 17th. The shares were sold at an average price of $11.46, for a total transaction of $270,948.78. Following the completion of the transaction, the chief financial officer now directly owns 496,188 shares of the company’s stock, valued at approximately $5,686,314.48. The disclosure for this sale can be found here. In the last 90 days, insiders sold 88,370 shares of company stock valued at $1,012,720. Company insiders own 45.90% of the company’s stock.

Hedge Funds Weigh In On LegalZoom.com

Institutional investors and hedge funds have recently made changes to their positions in the company. Whittier Trust Co. of Nevada Inc. acquired a new position in shares of LegalZoom.com in the 1st quarter valued at $27,000. Nisa Investment Advisors LLC acquired a new position in shares of LegalZoom.com in the 2nd quarter valued at $28,000. MetLife Investment Management LLC bought a new stake in LegalZoom.com in the 1st quarter valued at $63,000. FourThought Financial LLC bought a new stake in LegalZoom.com in the 1st quarter valued at $66,000. Finally, Royal Bank of Canada lifted its position in LegalZoom.com by 49.9% in the 1st quarter. Royal Bank of Canada now owns 5,099 shares of the company’s stock valued at $72,000 after acquiring an additional 1,697 shares in the last quarter. Institutional investors and hedge funds own 71.24% of the company’s stock.

LegalZoom.com Stock Performance

The firm has a market capitalization of $1.61 billion, a P/E ratio of -15.58 and a beta of 0.30. The firm’s 50-day moving average is $10.49 and its 200 day moving average is $12.18.

LegalZoom.com (NASDAQ:LZGet Rating) last issued its quarterly earnings results on Thursday, August 11th. The company reported ($0.06) EPS for the quarter, hitting the consensus estimate of ($0.06). LegalZoom.com had a negative net margin of 17.14% and a negative return on equity of 49.38%. The firm had revenue of $163.87 million for the quarter, compared to analysts’ expectations of $161.29 million. During the same period in the previous year, the firm posted ($0.30) EPS. The company’s revenue for the quarter was up 8.9% on a year-over-year basis. As a group, research analysts expect that LegalZoom.com, Inc. will post -0.2 EPS for the current fiscal year.

LegalZoom.com Company Profile

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LegalZoom.com, Inc operates an online platform for legal and compliance solutions in the United States. The company's platform offers products and services, including business formations, creating estate planning documents, protecting intellectual property, completing certain forms and agreements, providing access to independent attorney advice, and connecting customers with experts for tax preparation and bookkeeping services.

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