LegalZoom.com, Inc. (NASDAQ:LZ) Receives Average Recommendation of “Hold” from Brokerages

LegalZoom.com, Inc. (NASDAQ:LZ) has been given a consensus rating of “Hold” by the ten analysts that are covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $9.4167.

Several analysts have weighed in on the stock. Zacks Research upgraded shares of LegalZoom.com from a “strong sell” rating to a “hold” rating in a research note on Monday, February 23rd. Barclays reaffirmed an “underweight” rating and issued a $6.00 price target (down from $9.00) on shares of LegalZoom.com in a report on Wednesday, March 4th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. UBS Group dropped their price objective on shares of LegalZoom.com from $12.00 to $8.00 and set a “neutral” rating on the stock in a research note on Friday, February 20th. Finally, JPMorgan Chase & Co. cut their target price 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.

LegalZoom.com Stock Performance

NASDAQ:LZ opened at $5.98 on Wednesday. The company has a market capitalization of $1.03 billion, a price-to-earnings ratio of 74.76, a price-to-earnings-growth ratio of 1.37 and a beta of 1.25. LegalZoom.com has a one year low of $5.89 and a one year high of $12.40. The stock has a 50-day simple moving average of $7.37 and a 200 day simple moving average of $9.12.

LegalZoom.com (NASDAQ:LZ) last issued its quarterly earnings results on Thursday, February 19th. The company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $184.85 million. During the same quarter last year, the firm posted $0.19 earnings per share. LegalZoom.com’s revenue was up 17.7% compared to the same quarter last year. On average, equities research analysts forecast that LegalZoom.com will post 0.25 EPS for the current fiscal year.

LegalZoom.com announced that its board has authorized a share buyback program on Thursday, February 19th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 8.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Nicole Miller sold 23,325 shares of the business’s stock in a transaction that occurred on Thursday, February 26th. The stock was 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. The trade was a 2.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Noel Bertram Watson sold 15,000 shares of the business’s stock in a transaction on 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 directly owned 1,480,860 shares in the company, valued at $10,306,785.60. This represents a 1.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 5.90% of the company’s stock.

Institutional Investors Weigh In On LegalZoom.com

Several large investors have recently modified their holdings of LZ. EP Wealth Advisors LLC grew its holdings in shares of LegalZoom.com by 2.8% during the second quarter. EP Wealth Advisors LLC now owns 41,352 shares of the company’s stock valued at $368,000 after buying an additional 1,139 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in LegalZoom.com by 37.2% in the 4th quarter. EverSource Wealth Advisors LLC now owns 5,179 shares of the company’s stock worth $51,000 after acquiring an additional 1,403 shares in the last quarter. Clearstead Advisors LLC boosted its position in LegalZoom.com by 58.5% during the 3rd quarter. Clearstead Advisors LLC now owns 3,906 shares of the company’s stock worth $41,000 after acquiring an additional 1,441 shares during the period. Prelude Capital Management LLC grew its stake in LegalZoom.com by 11.6% during the 3rd quarter. Prelude Capital Management LLC now owns 14,185 shares of the company’s stock valued at $147,000 after acquiring an additional 1,470 shares in the last quarter. Finally, Chase Investment Counsel Corp grew its stake in LegalZoom.com by 12.3% during the 4th quarter. Chase Investment Counsel Corp now owns 13,601 shares of the company’s stock valued at $135,000 after acquiring an additional 1,489 shares in the last quarter. 81.99% of the stock is owned by institutional investors.

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.