LegalZoom.com (NASDAQ:LZ) Cut to “Strong Sell” at Zacks Research

Zacks Research downgraded shares of LegalZoom.com (NASDAQ:LZ) from a hold rating to a strong sell rating in a report issued on Monday morning,Zacks.com reports.

Other equities research analysts have also issued reports about the company. Barclays upped their price objective on shares of LegalZoom.com from $10.00 to $12.00 and gave the company an “equal weight” rating in a research note on Thursday, November 6th. William Blair upgraded shares of LegalZoom.com from a “market perform” rating to an “outperform” rating in a report on Thursday, November 6th. Morgan Stanley increased their price objective on LegalZoom.com from $8.50 to $9.00 and gave the stock an “underweight” rating in a report on Thursday, November 13th. Weiss Ratings reissued a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Finally, Citigroup lowered their target price on LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating on the stock in a research note on Friday, November 21st. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $11.50.

LegalZoom.com Price Performance

NASDAQ LZ opened at $8.49 on Monday. LegalZoom.com has a 12 month low of $6.47 and a 12 month high of $12.40. The company has a 50-day moving average of $9.69 and a 200-day moving average of $9.94. The company has a market cap of $1.51 billion, a P/E ratio of 70.76, a P/E/G ratio of 1.47 and a beta of 1.22.

LegalZoom.com (NASDAQ:LZ) last posted its earnings results on Wednesday, November 5th. The company reported $0.17 EPS for the quarter, missing analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $183.27 million. During the same period in the previous year, the firm posted $0.17 earnings per share. The company’s revenue for the quarter was up 12.8% on a year-over-year basis. As a group, equities research analysts anticipate that LegalZoom.com will post 0.25 EPS for the current year.

Insider Buying and Selling

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

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Voya Investment Management LLC raised its stake in LegalZoom.com by 368.6% in the third quarter. Voya Investment Management LLC now owns 406,847 shares of the company’s stock worth $4,223,000 after buying an additional 320,026 shares in the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in LegalZoom.com during the 2nd quarter valued at about $3,340,000. Russell Investments Group Ltd. increased its stake in LegalZoom.com by 125.1% during the 2nd quarter. Russell Investments Group Ltd. now owns 419,388 shares of the company’s stock valued at $3,729,000 after purchasing an additional 233,056 shares in the last quarter. Rice Hall James & Associates LLC purchased a new position in LegalZoom.com in the 3rd quarter worth approximately $3,397,000. Finally, JPMorgan Chase & Co. raised its position in LegalZoom.com by 48.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 1,352,865 shares of the company’s stock worth $12,054,000 after buying an additional 442,345 shares during the last quarter. Hedge funds and other institutional investors own 81.99% of the company’s stock.

About LegalZoom.com

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.