LegalZoom.com (NASDAQ:LZ) Reaches New 12-Month Low – Time to Sell?

LegalZoom.com, Inc. (NASDAQ:LZ)’s share price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $6.01 and last traded at $5.9150, with a volume of 733933 shares traded. The stock had previously closed at $6.28.

Analyst Upgrades and Downgrades

LZ has been the subject of several recent analyst reports. Barclays reaffirmed an “underweight” rating and set a $6.00 price objective (down from $9.00) on shares of LegalZoom.com in a research note on Wednesday, March 4th. JPMorgan Chase & Co. cut their price target on shares of LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating for the company in a report on Wednesday, February 18th. Weiss Ratings restated a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Zacks Research upgraded LegalZoom.com from a “strong sell” rating to a “hold” rating in a research report on Monday, February 23rd. Finally, UBS Group lowered their price objective on LegalZoom.com from $12.00 to $8.00 and set a “neutral” rating on the stock in a research report on Friday, February 20th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $9.42.

LegalZoom.com Stock Down 2.4%

The company’s 50-day moving average is $7.30 and its two-hundred day moving average is $9.09. The company has a market capitalization of $1.00 billion, a P/E ratio of 72.38, a PEG ratio of 1.30 and a beta of 1.25.

LegalZoom.com (NASDAQ:LZ) last announced its 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 company had revenue of $190.27 million for the quarter, compared to the consensus estimate of $184.85 million. During the same quarter in the previous year, the firm earned $0.19 earnings per share. The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. On average, sell-side analysts predict that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

LegalZoom.com announced that its board has authorized a stock buyback plan on Thursday, February 19th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 8.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is 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 value of $154,644.75. Following the completion of the transaction, the insider directly owned 813,033 shares in the company, valued at approximately $5,390,408.79. The trade was a 2.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Noel Bertram Watson sold 15,000 shares of the stock in a transaction on 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 transaction, the chief financial officer directly owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. This represents a 1.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 5.90% of the company’s stock.

Hedge Funds Weigh In On LegalZoom.com

A number of hedge funds and other institutional investors have recently modified their holdings of LZ. EP Wealth Advisors LLC raised its holdings in shares of LegalZoom.com by 2.8% during the 2nd 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 boosted its stake in LegalZoom.com by 37.2% in the fourth quarter. EverSource Wealth Advisors LLC now owns 5,179 shares of the company’s stock worth $51,000 after buying an additional 1,403 shares in the last quarter. Clearstead Advisors LLC grew its position in LegalZoom.com by 58.5% during the third quarter. Clearstead Advisors LLC now owns 3,906 shares of the company’s stock valued at $41,000 after acquiring an additional 1,441 shares during the last quarter. Prelude Capital Management LLC grew its position in LegalZoom.com by 11.6% during the third 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 during the last quarter. Finally, Chase Investment Counsel Corp raised its stake in shares of LegalZoom.com by 12.3% during the fourth quarter. Chase Investment Counsel Corp now owns 13,601 shares of the company’s stock worth $135,000 after acquiring an additional 1,489 shares in the last quarter. 81.99% of the stock is currently owned by hedge funds and other institutional investors.

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.