LegalZoom.com (NASDAQ:LZ) Downgraded to “Hold” Rating by Wall Street Zen

Wall Street Zen downgraded shares of LegalZoom.com (NASDAQ:LZ) from a buy rating to a hold rating in a research report released on Saturday.

LZ has been the topic of several other reports. JPMorgan Chase & Co. restated a “neutral” rating and set a $7.00 price objective (down from $8.00) on shares of LegalZoom.com in a report on Thursday. Citigroup decreased their price target on shares of LegalZoom.com from $8.50 to $7.50 and set a “neutral” rating for the company in a research report on Friday, May 22nd. Weiss Ratings restated a “sell (d+)” rating on shares of LegalZoom.com in a research note on Thursday, July 2nd. William Blair cut shares of LegalZoom.com from an “outperform” rating to a “market perform” rating in a report on Thursday. Finally, UBS Group reduced their price objective on shares of LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, May 7th. Five analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Reduce” and an average target price of $7.30.

LegalZoom.com Price Performance

NASDAQ:LZ opened at $5.77 on Friday. The firm has a 50-day moving average of $6.73 and a two-hundred day moving average of $6.72. The stock has a market cap of $988.17 million, a P/E ratio of 64.11, a PEG ratio of 0.96 and a beta of 1.28. LegalZoom.com has a 1-year low of $5.22 and a 1-year high of $12.40.

LegalZoom.com (NASDAQ:LZ) last announced its earnings results on Wednesday, August 5th. The company reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.15 by $0.01. LegalZoom.com had a return on equity of 15.83% and a net margin of 2.13%.The business had revenue of $205.29 million for the quarter, compared to analyst estimates of $205.83 million. During the same period in the previous year, the company earned $0.15 earnings per share. The company’s revenue for the quarter was up 6.6% compared to the same quarter last year. As a group, equities analysts expect that LegalZoom.com will post 0.34 earnings per share for the current year.

Insider Activity

In related news, insider Nicole Miller sold 19,199 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $6.58, for a total transaction of $126,329.42. Following the sale, the insider directly owned 1,119,222 shares of the company’s stock, valued at approximately $7,364,480.76. This represents a 1.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Noel Bertram Watson sold 15,000 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $6.45, for a total value of $96,750.00. Following the transaction, the chief financial officer owned 2,041,847 shares in the company, valued at $13,169,913.15. This trade represents a 0.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 7.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Osaic Holdings Inc. raised its stake in LegalZoom.com by 477.3% during the second quarter. Osaic Holdings Inc. now owns 4,555 shares of the company’s stock worth $41,000 after acquiring an additional 3,766 shares during the period. EverSource Wealth Advisors LLC boosted its stake in LegalZoom.com by 976.4% in the second quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company’s stock valued at $41,000 after acquiring an additional 4,140 shares during the period. PNC Financial Services Group Inc. grew its holdings in shares of LegalZoom.com by 11,415.2% during the first quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock valued at $43,000 after purchasing an additional 7,534 shares during the last quarter. Parallel Advisors LLC grew its holdings in shares of LegalZoom.com by 8,589.8% during the third quarter. Parallel Advisors LLC now owns 5,127 shares of the company’s stock valued at $53,000 after purchasing an additional 5,068 shares during the last quarter. Finally, Cetera Investment Advisers acquired a new stake in shares of LegalZoom.com during the 1st quarter worth approximately $58,000. 81.99% of the stock is owned by institutional investors and hedge funds.

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.