LegalZoom.com (NASDAQ:LZ) Shares Gap Up – Here’s Why

LegalZoom.com, Inc. (NASDAQ:LZ) shares gapped up prior to trading on Wednesday . The stock had previously closed at $8.88, but opened at $9.37. LegalZoom.com shares last traded at $9.2850, with a volume of 1,544,825 shares trading hands.

Analysts Set New Price Targets

LZ has been the topic of several research analyst reports. Barclays increased their target price on LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Thursday, November 6th. Citigroup decreased their price objective on shares of LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating on the stock in a report on Friday, November 21st. Zacks Research cut shares of LegalZoom.com from a “hold” rating to a “strong sell” rating in a research report on Monday, January 19th. Weiss Ratings reiterated a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Finally, Morgan Stanley increased their price target on shares of LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a research note on Thursday, November 13th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $11.50.

LegalZoom.com Stock Down 2.4%

The stock’s fifty day moving average price is $9.62 and its two-hundred day moving average price is $9.93. The company has a market capitalization of $1.58 billion, a PE ratio of 74.09, a price-to-earnings-growth ratio of 1.57 and a beta of 1.22.

LegalZoom.com (NASDAQ:LZ) last posted its earnings results on Wednesday, November 5th. The company reported $0.17 earnings per share (EPS) 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 business had revenue of $190.16 million during the quarter, compared to the consensus estimate of $183.27 million. During the same period in the previous year, the business earned $0.17 earnings per share. The firm’s revenue for the quarter was up 12.8% compared to the same quarter last year. On average, equities research analysts forecast that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

Insider Activity

In other LegalZoom.com news, insider Nicole Miller sold 23,506 shares of LegalZoom.com stock in a transaction that occurred 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 sale, the insider directly owned 868,627 shares of the company’s stock, valued at approximately $8,364,878.01. The trade was a 2.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Noel Bertram Watson sold 15,000 shares of the stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $9.56, for a total value of $143,400.00. Following the completion of the transaction, the chief financial officer directly owned 1,551,582 shares of the company’s stock, valued at $14,833,123.92. This represents a 0.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 5.90% of the company’s stock.

Institutional Trading of LegalZoom.com

Several institutional investors have recently bought and sold shares of the company. Exchange Traded Concepts LLC purchased a new position in LegalZoom.com in the third quarter worth about $34,000. Parkside Financial Bank & Trust purchased a new position in LegalZoom.com in the 3rd quarter worth approximately $40,000. Clearstead Advisors LLC lifted its position in LegalZoom.com by 58.5% in the 3rd quarter. Clearstead Advisors LLC now owns 3,906 shares of the company’s stock valued at $41,000 after acquiring an additional 1,441 shares in the last quarter. Osaic Holdings Inc. boosted its stake in LegalZoom.com by 477.3% during the 2nd quarter. Osaic Holdings Inc. now owns 4,555 shares of the company’s stock valued at $41,000 after purchasing an additional 3,766 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of LegalZoom.com by 976.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company’s stock worth $41,000 after purchasing an additional 4,140 shares in the last quarter. 81.99% of the stock is owned by hedge funds and other institutional investors.

LegalZoom.com Company Profile

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.