LegalZoom.com (NASDAQ:LZ) Reaches New 1-Year Low – Time to Sell?

LegalZoom.com, Inc. (NASDAQ:LZ)’s stock price hit a new 52-week low on Friday . The stock traded as low as $5.43 and last traded at $5.4050, with a volume of 452439 shares changing hands. The stock had previously closed at $5.66.

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. Zacks Research raised shares of LegalZoom.com from a “strong sell” rating to a “hold” rating in a report on Monday, February 23rd. JPMorgan Chase & Co. lowered their price target on shares of LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating on the stock in a report on Wednesday, February 18th. Barclays reaffirmed an “underweight” rating and set a $6.00 price target (down from $9.00) on shares of LegalZoom.com in a report on Wednesday, March 4th. UBS Group lowered their price target on shares of LegalZoom.com from $12.00 to $8.00 and set a “neutral” rating on the stock in a report on Friday, February 20th. Finally, Weiss Ratings downgraded shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, April 6th. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $9.42.

LegalZoom.com Stock Down 0.9%

The firm’s fifty day moving average price is $6.55 and its 200 day moving average price is $8.69. The stock has a market cap of $970.08 million, a PE ratio of 70.13, a P/E/G ratio of 1.21 and a beta of 1.30.

LegalZoom.com (NASDAQ:LZ) last released its 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 return on equity of 6.35% and a net margin of 2.04%.The company had revenue of $190.27 million during the quarter, compared to analysts’ expectations of $184.85 million. During the same period last year, the firm posted $0.19 EPS. LegalZoom.com’s quarterly revenue was up 17.7% compared to the same quarter last year. As a group, analysts anticipate that LegalZoom.com, Inc. will post 0.25 earnings per share for the current fiscal year.

LegalZoom.com announced that its board has initiated a share buyback plan on Thursday, February 19th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 8.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider Nicole Miller sold 23,325 shares of the company’s stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $6.63, for a total transaction of $154,644.75. Following the sale, the insider owned 813,033 shares of the company’s stock, valued at $5,390,408.79. This represents a 2.79% decrease in their ownership of the stock. The transaction 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 shares were sold at an average price of $6.96, for a total transaction of $104,400.00. Following the sale, the chief financial officer directly owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. The trade was a 1.00% decrease in their position. The SEC filing for this sale provides additional information. 5.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On LegalZoom.com

Hedge funds have recently bought and sold shares of the business. Voya Investment Management LLC grew its holdings in shares of 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 purchasing an additional 320,026 shares during the last quarter. JPMorgan Chase & Co. grew 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 worth $22,528,000 after purchasing an additional 817,462 shares during the last quarter. Invenomic Capital Management LP grew its holdings in shares of LegalZoom.com by 43.9% in the third quarter. Invenomic Capital Management LP now owns 1,281,765 shares of the company’s stock worth $13,305,000 after purchasing an additional 390,742 shares during the last quarter. Rice Hall James & Associates LLC bought a new position in shares of LegalZoom.com in the third quarter worth about $3,397,000. Finally, Neumeier Poma Investment Counsel LLC bought a new position in shares of LegalZoom.com in the third quarter worth about $18,106,000. 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.