LegalZoom.com (NASDAQ:LZ) Sets New 52-Week Low – What’s Next?

LegalZoom.com, Inc. (NASDAQ:LZ)’s stock price reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $5.25 and last traded at $5.2550, with a volume of 610344 shares. The stock had previously closed at $5.50.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on LZ. UBS Group decreased their price objective on LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, May 7th. Zacks Research raised LegalZoom.com from a “strong sell” rating to a “hold” rating in a report on Monday, February 23rd. Weiss Ratings downgraded LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, April 6th. Barclays restated an “underweight” rating and set a $6.00 target price (down from $9.00) on shares of LegalZoom.com in a research report on Wednesday, March 4th. Finally, Citigroup lowered their price target on LegalZoom.com from $8.50 to $7.50 and set a “neutral” rating on the stock in a research report on Friday, May 22nd. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $8.75.

LegalZoom.com Price Performance

The business has a 50 day simple moving average of $6.16 and a 200 day simple moving average of $7.39. The company has a market cap of $914.04 million, a price-to-earnings ratio of 88.43, a price-to-earnings-growth ratio of 0.97 and a beta of 1.31.

LegalZoom.com (NASDAQ:LZ) last announced its earnings results on Wednesday, May 6th. The company reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.01). LegalZoom.com had a net margin of 1.46% and a return on equity of 11.53%. The business had revenue of $206.78 million during the quarter, compared to analyst estimates of $202.14 million. During the same quarter last year, the business posted $0.13 earnings per share. The business’s quarterly revenue was up 12.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that LegalZoom.com, Inc. will post 0.32 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other LegalZoom.com news, insider Nicole Miller sold 19,199 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $6.58, for a total value of $126,329.42. Following the completion of the sale, the insider owned 1,119,222 shares in the company, valued at approximately $7,364,480.76. This trade represents a 1.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 bought 125,000 shares of the company’s stock in a transaction on Monday, May 11th. The stock was bought at an average cost of $6.15 per share, with a total value of $768,750.00. Following the completion of the purchase, the chief executive officer owned 2,955,609 shares of the company’s stock, valued at approximately $18,176,995.35. The trade was a 4.42% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 5.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. lifted its stake in shares of LegalZoom.com by 60.4% during the third quarter. JPMorgan Chase & Co. now owns 2,170,327 shares of the company’s stock valued at $22,528,000 after acquiring an additional 817,462 shares during the period. UBS Group AG raised its position in shares of LegalZoom.com by 87.9% in the 4th quarter. UBS Group AG now owns 613,537 shares of the company’s stock valued at $6,092,000 after acquiring an additional 287,063 shares during the period. Jupiter Asset Management Ltd. raised its position in shares of LegalZoom.com by 255.5% in the 4th quarter. Jupiter Asset Management Ltd. now owns 231,773 shares of the company’s stock valued at $2,302,000 after acquiring an additional 166,574 shares during the period. Invenomic Capital Management LP boosted its stake in LegalZoom.com by 43.9% during the 3rd quarter. Invenomic Capital Management LP now owns 1,281,765 shares of the company’s stock worth $13,305,000 after acquiring an additional 390,742 shares during the last quarter. Finally, Neumeier Poma Investment Counsel LLC acquired a new position in LegalZoom.com during the third quarter valued at approximately $18,106,000. Institutional investors own 81.99% of the company’s stock.

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.