LegalZoom.com (NASDAQ:LZ) Sees Large Volume Increase – Here’s Why

Shares of LegalZoom.com, Inc. (NASDAQ:LZ) saw strong trading volume on Friday . Approximately 2,075,915 shares changed hands during mid-day trading, a decline of 33% from the previous session’s volume of 3,085,851 shares.The stock last traded at $5.9310 and had previously closed at $5.66.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. UBS Group cut their price target on shares of LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, May 7th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $7.00 price objective (down from $8.00) on shares of LegalZoom.com in a research note on Thursday. Citigroup dropped their target price on LegalZoom.com from $8.50 to $7.50 and set a “neutral” rating for the company in a report on Friday, May 22nd. William Blair downgraded LegalZoom.com from an “outperform” rating to a “market perform” rating in a research report on Thursday. Finally, Wall Street Zen raised LegalZoom.com from a “hold” rating to a “buy” rating in a research note on Tuesday, July 28th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, LegalZoom.com currently has a consensus rating of “Reduce” and a consensus price target of $8.08.

LegalZoom.com Stock Performance

The firm has a market cap of $995.23 million, a price-to-earnings ratio of 64.23, a PEG ratio of 1.35 and a beta of 1.28. The business’s 50-day moving average is $6.75 and its 200-day moving average is $6.73.

LegalZoom.com (NASDAQ:LZ) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.01. The firm had revenue of $205.29 million during the quarter, compared to the consensus estimate of $205.83 million. LegalZoom.com had a net margin of 2.13% and a return on equity of 14.78%. The firm’s quarterly revenue was up 6.6% on a year-over-year basis. During the same period last year, the firm posted $0.15 EPS. Equities research analysts expect that LegalZoom.com, Inc. will post 0.34 EPS for the current fiscal year.

Insider Transactions at LegalZoom.com

In related news, insider Nicole Miller sold 19,199 shares of the 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 in the company, valued at $7,364,480.76. This represents a 1.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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, CEO Jeffrey M. Stibel purchased 125,000 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The shares were acquired at an average cost of $6.15 per share, with a total value of $768,750.00. Following the completion of the acquisition, the chief executive officer directly owned 2,955,609 shares in the company, valued at approximately $18,176,995.35. This represents a 4.42% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 7.40% of the stock is owned by company insiders.

Institutional Trading of LegalZoom.com

Hedge funds and other institutional investors have recently made changes to their positions in the business. Osaic Holdings Inc. raised its holdings in shares of LegalZoom.com by 477.3% in the second quarter. Osaic Holdings Inc. now owns 4,555 shares of the company’s stock valued at $41,000 after buying an additional 3,766 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in LegalZoom.com by 976.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company’s stock worth $41,000 after buying an additional 4,140 shares in the last quarter. PNC Financial Services Group Inc. lifted its position in LegalZoom.com by 11,415.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock worth $43,000 after buying an additional 7,534 shares in the last quarter. Parallel Advisors LLC grew its holdings in LegalZoom.com by 8,589.8% during the 3rd quarter. Parallel Advisors LLC now owns 5,127 shares of the company’s stock worth $53,000 after acquiring an additional 5,068 shares during the last quarter. Finally, Cetera Investment Advisers bought a new stake in LegalZoom.com during the 1st quarter worth about $58,000. 81.99% of the stock is currently 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.