LegalZoom.com (NASDAQ:LZ) Shares Gap Down – Here’s What Happened

LegalZoom.com, Inc. (NASDAQ:LZ) gapped down prior to trading on Wednesday . The stock had previously closed at $6.95, but opened at $6.46. LegalZoom.com shares last traded at $6.68, with a volume of 493,576 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Morgan Stanley boosted their target price on shares of LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a research report on Thursday, November 13th. William Blair upgraded shares of LegalZoom.com from a “market perform” rating to an “outperform” rating in a research report on Thursday, November 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Zacks Research raised LegalZoom.com from a “strong sell” rating to a “hold” rating in a research note on Monday, February 23rd. Finally, Citigroup reduced their price target on shares of LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating on the stock in a research report on Friday, November 21st. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, LegalZoom.com presently has an average rating of “Hold” and an average price target of $9.42.

LegalZoom.com Stock Performance

The company’s 50 day moving average is $8.38 and its 200 day moving average is $9.56. The firm has a market cap of $1.17 billion, a P/E ratio of 84.76, a P/E/G ratio of 1.45 and a beta of 1.25.

LegalZoom.com (NASDAQ:LZ) last announced its quarterly earnings results on Thursday, February 19th. The company reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The firm had revenue of $190.27 million during the quarter, compared to the consensus estimate of $184.85 million. LegalZoom.com had a net margin of 2.04% and a return on equity of 6.35%. The firm’s revenue was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.19 earnings per share. On average, equities research analysts anticipate that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

LegalZoom.com announced that its Board of Directors has approved a share buyback plan on Thursday, February 19th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 8.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Insider Activity at LegalZoom.com

In other news, CFO Noel Bertram Watson sold 15,000 shares of LegalZoom.com 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 transaction, the chief financial officer owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. The trade was a 1.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Nicole Miller sold 23,325 shares of the stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $6.63, for a total value of $154,644.75. Following the completion of 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. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 5.90% of the company’s stock.

Institutional Investors Weigh In On LegalZoom.com

A number of institutional investors have recently made changes to their positions in LZ. Exchange Traded Concepts LLC bought a new position in shares of LegalZoom.com during the third quarter worth about $34,000. Parkside Financial Bank & Trust bought a new position in LegalZoom.com during the 3rd quarter worth approximately $40,000. Clearstead Advisors LLC lifted its position in shares of LegalZoom.com by 58.5% in the 3rd quarter. Clearstead Advisors LLC now owns 3,906 shares of the company’s stock worth $41,000 after purchasing an additional 1,441 shares during the period. Osaic Holdings Inc. boosted its stake in shares of LegalZoom.com by 477.3% in the 2nd quarter. Osaic Holdings Inc. now owns 4,555 shares of the company’s stock valued at $41,000 after purchasing an additional 3,766 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in shares of LegalZoom.com by 976.4% during the second quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company’s stock worth $41,000 after buying an additional 4,140 shares during the period. 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.