LegalZoom.com (NASDAQ:LZ) Shares Gap Up – Should You Buy?

Shares of LegalZoom.com, Inc. (NASDAQ:LZ) gapped up before the market opened on Wednesday . The stock had previously closed at $8.88, but opened at $9.37. LegalZoom.com shares last traded at $9.2850, with a volume of 1,544,825 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the stock. Wall Street Zen lowered shares of LegalZoom.com from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 1st. Morgan Stanley boosted their price target on shares of LegalZoom.com from $8.50 to $9.00 and gave the stock an “underweight” rating in a research note on Thursday, November 13th. Citigroup cut their price objective on LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating on the stock in a research report on Friday, November 21st. Barclays lifted their target price on LegalZoom.com from $10.00 to $12.00 and gave the company an “equal weight” rating in a report on Thursday, November 6th. Finally, Zacks Research downgraded LegalZoom.com from a “hold” rating to a “strong sell” rating in a research report on Monday, January 19th. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $11.50.

LegalZoom.com Price Performance

The firm has a market cap of $1.65 billion, a price-to-earnings ratio of 77.46, a PEG ratio of 1.52 and a beta of 1.22. The stock has a 50-day moving average price of $9.61 and a 200 day moving average price of $9.94.

LegalZoom.com (NASDAQ:LZ) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.03). LegalZoom.com had a return on equity of 9.91% and a net margin of 3.05%.The firm had revenue of $190.16 million for the quarter, compared to analysts’ expectations of $183.27 million. During the same quarter in the prior year, the business earned $0.17 EPS. The company’s quarterly revenue was up 12.8% compared to the same quarter last year. As a group, equities research analysts predict that LegalZoom.com, Inc. will post 0.25 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Nicole Miller sold 23,506 shares of the business’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $9.63, for a total value of $226,362.78. Following the transaction, the insider owned 868,627 shares in the company, valued at $8,364,878.01. The trade was a 2.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Noel Bertram Watson sold 15,000 shares of the stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $9.56, for a total value of $143,400.00. Following the sale, the chief financial officer directly owned 1,551,582 shares of the company’s stock, valued at $14,833,123.92. The trade was a 0.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 5.90% of the company’s stock.

Institutional Investors Weigh In On LegalZoom.com

Several hedge funds have recently modified their holdings of LZ. Arrowstreet Capital Limited Partnership grew its holdings in shares of LegalZoom.com by 20.8% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 4,408,170 shares of the company’s stock worth $45,757,000 after acquiring an additional 758,367 shares during the period. Franklin Resources Inc. increased its position in shares of LegalZoom.com by 2.8% in the third quarter. Franklin Resources Inc. now owns 3,327,296 shares of the company’s stock valued at $34,537,000 after buying an additional 90,599 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of LegalZoom.com by 7.8% during the 3rd quarter. Dimensional Fund Advisors LP now owns 2,680,984 shares of the company’s stock worth $27,833,000 after buying an additional 194,080 shares during the last quarter. JPMorgan Chase & Co. boosted its position in shares of LegalZoom.com by 60.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 2,170,327 shares of the company’s stock worth $22,528,000 after buying an additional 817,462 shares in the last quarter. Finally, Punch & Associates Investment Management Inc. grew its stake in LegalZoom.com by 33.6% in the 3rd quarter. Punch & Associates Investment Management Inc. now owns 2,126,260 shares of the company’s stock valued at $22,071,000 after acquiring an additional 535,290 shares during the last quarter. 81.99% of the stock is 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.