LegalZoom.com (NASDAQ:LZ) Stock Price Breaks Below 200 Day Moving Average – What’s Next?

LegalZoom.com, Inc. (NASDAQ:LZ)’s stock price crossed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $6.63 and traded as low as $6.54. LegalZoom.com shares last traded at $6.58, with a volume of 2,814,008 shares.

Analyst Ratings Changes

A number of equities analysts recently issued reports on LZ shares. JPMorgan Chase & Co. restated a “neutral” rating and issued a $7.00 target price (down from $8.00) on shares of LegalZoom.com in a report on Thursday, August 6th. Wall Street Zen raised shares of LegalZoom.com from a “hold” rating to a “buy” rating in a research report on Saturday, September 26th. Weiss Ratings upgraded shares of LegalZoom.com from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, October 14th. Finally, William Blair lowered shares of LegalZoom.com from an “outperform” rating to a “market perform” rating in a report on Thursday, August 6th. Six equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, LegalZoom.com presently has an average rating of “Reduce” and an average target price of $7.30.

LegalZoom.com Price Performance

The stock has a fifty day moving average price of $6.05 and a 200-day moving average price of $6.63. The company has a market cap of $1.13 billion, a PE ratio of 73.11 and a beta of 1.20.

LegalZoom.com (NASDAQ:LZ) last issued its earnings results on Wednesday, August 5th. The company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.15 by $0.01. The business had revenue of $205.29 million during the quarter, compared to analyst estimates of $205.83 million. During the same period last year, the business earned $0.15 EPS. The business’s quarterly revenue was up 6.6% on a year-over-year basis. On average, equities analysts anticipate that LegalZoom.com, Inc. will post 0.32 earnings per share for the current year.

Insider Activity

In other news, CFO Noel Watson sold 83,629 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $5.83, for a total value of $487,557.07. Following the transaction, the chief financial officer owned 1,407,801 shares in the company, valued at $8,207,479.83. This represents a 5.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Nicole Miller sold 33,479 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $5.51, for a total transaction of $184,469.29. Following the completion of the sale, the insider directly owned 943,453 shares of the company’s stock, valued at $5,198,426.03. This trade represents a 3.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Over the last three months, insiders sold 577,475 shares of company stock valued at $3,375,197. Company insiders own 7.40% of the company’s stock.

Institutional Trading of LegalZoom.com

Several institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE boosted its holdings in shares of LegalZoom.com by 187.4% during the first quarter. Bank of America Corp DE now owns 2,509,891 shares of the company’s stock worth $14,231,000 after purchasing an additional 1,636,487 shares during the period. Principal Financial Group Inc. increased its stake in LegalZoom.com by 579.1% in the 1st quarter. Principal Financial Group Inc. now owns 1,010,914 shares of the company’s stock valued at $5,732,000 after buying an additional 862,045 shares during the period. Empowered Funds LLC acquired a new position in LegalZoom.com in the 1st quarter valued at approximately $2,918,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in LegalZoom.com in the 1st quarter valued at approximately $1,923,000. Finally, SEB Asset Management AB purchased a new stake in LegalZoom.com in the 1st quarter worth approximately $1,881,000. 81.99% of the stock is currently owned by institutional investors and hedge funds.

About LegalZoom.com

LegalZoom.com, Inc is an online platform that provides legal, compliance and tax-related products and services to individuals, families and small businesses. The company’s platform is designed to make common legal and administrative processes more accessible through digital tools, guided services and access to independent professionals.

LegalZoom’s offerings include business formation services for limited liability companies and corporations, registered-agent services, annual compliance support, business licensing and trademark services.