LegalZoom.com (NASDAQ:LZ) Stock Rating Lowered by Wall Street Zen

Wall Street Zen downgraded shares of LegalZoom.com (NASDAQ:LZ) from a strong-buy rating to a buy rating in a report published on Friday.

Several other analysts have also weighed in on the company. Morgan Stanley upped their price objective on LegalZoom.com from $7.00 to $8.00 and gave the company an “underweight” rating in a report on Friday, May 9th. JMP Securities reiterated a “market perform” rating on shares of LegalZoom.com in a research report on Thursday, May 15th. Citigroup raised their price objective on shares of LegalZoom.com from $10.00 to $12.00 and gave the company a “neutral” rating in a research report on Monday, August 25th. Bank of America raised shares of LegalZoom.com from an “underperform” rating to a “buy” rating and lifted their price objective for the stock from $8.00 to $12.00 in a research note on Friday, August 8th. Finally, Barclays increased their target price on shares of LegalZoom.com from $9.00 to $10.00 and gave the company an “equal weight” rating in a research note on Tuesday, August 12th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $10.50.

LegalZoom.com Price Performance

LegalZoom.com stock opened at $10.32 on Friday. LegalZoom.com has a 12-month low of $6.16 and a 12-month high of $11.93. The stock has a market capitalization of $1.86 billion, a PE ratio of 64.50, a price-to-earnings-growth ratio of 2.36 and a beta of 1.25. The firm has a 50 day simple moving average of $9.73 and a 200-day simple moving average of $9.02.

LegalZoom.com (NASDAQ:LZ) last announced its earnings results on Thursday, August 7th. The company reported $0.15 EPS for the quarter, hitting the consensus estimate of $0.15. The firm had revenue of $192.51 million for the quarter, compared to analysts’ expectations of $182.49 million. LegalZoom.com had a return on equity of 20.36% and a net margin of 4.07%.The firm’s quarterly revenue was up 8.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.10 earnings per share. LegalZoom.com has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, analysts forecast that LegalZoom.com will post 0.25 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director John Francis Murphy sold 24,250 shares of the company’s stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $10.57, for a total value of $256,322.50. Following the completion of the sale, the director owned 69,953 shares in the company, valued at approximately $739,403.21. This represents a 25.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Noel Bertram Watson sold 27,319 shares of LegalZoom.com stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $11.07, for a total transaction of $302,421.33. Following the transaction, the chief financial officer owned 1,676,426 shares in the company, valued at approximately $18,558,035.82. The trade was a 1.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 109,859 shares of company stock worth $1,193,100 over the last ninety days. 5.90% of the stock is currently owned by company insiders.

Institutional Trading of LegalZoom.com

Hedge funds have recently modified their holdings of the business. Brighton Jones LLC purchased a new position in shares of LegalZoom.com during the fourth quarter valued at $185,000. Dimensional Fund Advisors LP boosted its position in LegalZoom.com by 2.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,396,523 shares of the company’s stock worth $10,489,000 after acquiring an additional 32,075 shares during the period. Price T Rowe Associates Inc. MD boosted its position in LegalZoom.com by 8.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 65,240 shares of the company’s stock worth $490,000 after acquiring an additional 5,045 shares during the period. Ameriprise Financial Inc. grew its stake in LegalZoom.com by 30.0% during the 4th quarter. Ameriprise Financial Inc. now owns 322,510 shares of the company’s stock valued at $2,422,000 after acquiring an additional 74,507 shares in the last quarter. Finally, BNP Paribas Financial Markets acquired a new position in shares of LegalZoom.com in the 4th quarter valued at about $1,122,000. Hedge funds and other institutional investors own 81.99% of the company’s stock.

About LegalZoom.com

LegalZoom.com, Inc, together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations.