LegalZoom.com (NASDAQ:LZ) Shares Down 6% – Here’s What Happened

LegalZoom.com, Inc. (NASDAQ:LZ)’s stock price fell 6% on Monday . The company traded as low as $5.32 and last traded at $5.2850. Approximately 621,334 shares were traded during mid-day trading, a decline of 80% from the average session volume of 3,107,342 shares. The stock had previously closed at $5.62.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. UBS Group dropped their target price on LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, May 7th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $7.00 price target (down from $8.00) on shares of LegalZoom.com in a report on Thursday, August 6th. Citigroup lowered their price objective on LegalZoom.com from $8.50 to $7.50 and set a “neutral” rating for the company in a research note on Friday, May 22nd. Weiss Ratings restated a “sell (d+)” rating on shares of LegalZoom.com in a report on Thursday, July 2nd. Finally, William Blair lowered LegalZoom.com from an “outperform” rating to a “market perform” rating in a research report on Thursday, August 6th. Five analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, LegalZoom.com has a consensus rating of “Reduce” and a consensus target price of $7.30.

LegalZoom.com Stock Performance

The firm has a market cap of $974.47 million, a price-to-earnings ratio of 63.22, a price-to-earnings-growth ratio of 1.06 and a beta of 1.28. The business’s 50 day moving average price is $6.68 and its 200-day moving average price is $6.55.

LegalZoom.com (NASDAQ:LZ) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.15 by $0.01. The business had revenue of $205.29 million during the quarter, compared to the consensus estimate of $205.83 million. LegalZoom.com had a return on equity of 15.83% and a net margin of 2.13%.The company’s revenue for the quarter was up 6.6% compared to the same quarter last year. During the same period last year, the firm earned $0.15 earnings per share. On average, analysts forecast that LegalZoom.com, Inc. will post 0.32 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Nicole Miller sold 43,996 shares of LegalZoom.com stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $5.51, for a total value of $242,417.96. Following the completion of the transaction, the insider owned 976,932 shares in the company, valued at approximately $5,382,895.32. This trade represents a 4.31% 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. 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. 7.40% of the stock is currently owned by corporate insiders.

Institutional Trading of LegalZoom.com

Several institutional investors have recently added to or reduced their stakes in the business. Osaic Holdings Inc. boosted its holdings in shares of LegalZoom.com by 477.3% in the 2nd 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 period. EverSource Wealth Advisors LLC raised its stake in LegalZoom.com by 976.4% during the second quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company’s stock worth $41,000 after acquiring an additional 4,140 shares during the period. PNC Financial Services Group Inc. lifted its holdings in LegalZoom.com by 11,415.2% in the first quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock worth $43,000 after acquiring an additional 7,534 shares during the last quarter. Parallel Advisors LLC lifted its holdings in LegalZoom.com by 8,589.8% in the third 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 acquired a new position in LegalZoom.com in the first quarter valued at approximately $58,000. Institutional investors own 81.99% of the company’s stock.

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.