LegalZoom.com, Inc. (NASDAQ:LZ) Sees Large Increase in Short Interest

LegalZoom.com, Inc. (NASDAQ:LZ) saw a large growth in short interest in the month of December. As of December 31st, there was short interest totaling 10,817,341 shares, a growth of 25.4% from the December 15th total of 8,624,828 shares. Based on an average daily volume of 1,507,388 shares, the days-to-cover ratio is currently 7.2 days. Approximately 6.5% of the company’s shares are sold short. Approximately 6.5% of the company’s shares are sold short. Based on an average daily volume of 1,507,388 shares, the days-to-cover ratio is currently 7.2 days.

Insiders Place Their Bets

In related news, CFO Noel Bertram Watson sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $9.56, for a total transaction of $143,400.00. Following the sale, the chief financial officer owned 1,551,582 shares of the company’s stock, valued at $14,833,123.92. This trade represents a 0.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Nicole Miller sold 23,506 shares of LegalZoom.com stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $9.63, for a total transaction of $226,362.78. Following the completion of the transaction, the insider directly owned 868,627 shares in the company, valued at $8,364,878.01. This represents a 2.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 5.90% of the company’s stock.

Hedge Funds Weigh In On LegalZoom.com

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Pallas Capital Advisors LLC increased its holdings in shares of LegalZoom.com by 8.7% during the 4th quarter. Pallas Capital Advisors LLC now owns 26,162 shares of the company’s stock worth $260,000 after buying an additional 2,092 shares during the last quarter. SG Americas Securities LLC purchased a new position in shares of LegalZoom.com in the 4th quarter valued at about $5,304,000. Wealth Enhancement Advisory Services LLC grew its holdings in LegalZoom.com by 18.8% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 71,230 shares of the company’s stock worth $745,000 after acquiring an additional 11,274 shares in the last quarter. NorthCrest Asset Manangement LLC increased its holdings in LegalZoom.com by 36.4% in the fourth quarter. NorthCrest Asset Manangement LLC now owns 15,106 shares of the company’s stock valued at $153,000 after buying an additional 4,035 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in shares of LegalZoom.com by 60.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 2,170,327 shares of the company’s stock worth $22,528,000 after acquiring an additional 817,462 shares in the last quarter. 81.99% of the stock is currently owned by institutional investors and hedge funds.

LegalZoom.com Stock Down 3.8%

Shares of NASDAQ LZ traded down $0.35 during trading on Monday, hitting $8.87. The company had a trading volume of 2,879,427 shares, compared to its average volume of 1,447,493. The firm has a market capitalization of $1.57 billion, a price-to-earnings ratio of 73.92, a price-to-earnings-growth ratio of 1.48 and a beta of 1.22. The stock has a fifty day simple moving average of $9.75 and a two-hundred day simple moving average of $9.95. LegalZoom.com has a fifty-two week low of $6.47 and a fifty-two week high of $12.40.

LegalZoom.com (NASDAQ:LZ) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.03). LegalZoom.com had a return on equity of 9.91% and a net margin of 3.05%.The company had revenue of $190.16 million for the quarter, compared to analyst estimates of $183.27 million. During the same quarter last year, the company earned $0.17 EPS. The firm’s revenue for the quarter was up 12.8% on a year-over-year basis. On average, analysts anticipate that LegalZoom.com will post 0.25 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of LegalZoom.com in a report on Monday, December 29th. Citigroup dropped their price target on shares of LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating on the stock in a research report on Friday, November 21st. Morgan Stanley upped their price objective on shares of LegalZoom.com from $8.50 to $9.00 and gave the stock an “underweight” rating in a research report on Thursday, November 13th. Barclays increased their target price on shares of LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a research note on Thursday, November 6th. Finally, Wall Street Zen lowered LegalZoom.com from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 1st. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $11.50.

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.