LegalZoom.com (NASDAQ:LZ) Shares Gap Up – What’s Next?

LegalZoom.com, Inc. (NASDAQ:LZ) shares gapped up prior to trading on Monday . The stock had previously closed at $5.83, but opened at $6.13. LegalZoom.com shares last traded at $6.0830, with a volume of 730,377 shares traded.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. UBS Group cut their target price 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. Weiss Ratings lowered shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday. 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. Barclays reiterated an “underweight” rating and issued a $6.00 target price (down from $9.00) on shares of LegalZoom.com in a report on Wednesday, March 4th. Finally, Zacks Research upgraded shares of LegalZoom.com from a “strong sell” rating to a “hold” rating in a report on Monday, February 23rd. Three analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $9.42.

LegalZoom.com Trading Down 1.5%

The firm’s 50 day simple moving average is $6.75 and its 200-day simple moving average is $8.78. The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of 74.88, a price-to-earnings-growth ratio of 1.27 and a beta of 1.30.

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

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

Insider Activity

In related news, CFO Noel Bertram Watson sold 15,000 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The shares were 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 approximately $10,306,785.60. This trade represents a 1.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Nicole Miller sold 23,325 shares of the firm’s stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $6.63, for a total transaction 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. This trade represents a 2.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 5.90% of the company’s stock.

Institutional Investors Weigh In On LegalZoom.com

Several hedge funds have recently bought and sold shares of LZ. Brighton Jones LLC acquired a new stake in LegalZoom.com in the 4th quarter valued at about $185,000. Amundi acquired a new stake in LegalZoom.com in the 1st quarter valued at about $196,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in LegalZoom.com by 3.0% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,980 shares of the company’s stock valued at $646,000 after purchasing an additional 2,161 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in LegalZoom.com by 9.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,313,429 shares of the company’s stock valued at $11,309,000 after purchasing an additional 113,769 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of LegalZoom.com by 1.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 275,978 shares of the company’s stock worth $2,376,000 after buying an additional 4,607 shares during the period. 81.99% of the stock is currently owned by institutional investors and hedge funds.

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.