LegalZoom.com, Inc. (NASDAQ:LZ) Receives Consensus Recommendation of “Reduce” from Analysts

LegalZoom.com, Inc. (NASDAQ:LZ) has been assigned an average rating of “Reduce” from the nine brokerages that are currently covering the firm, MarketBeat reports. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and one has given a buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $9.79.

LZ has been the subject of several recent research reports. Bank of America cut LegalZoom.com from a “buy” rating to an “underperform” rating and dropped their price objective for the stock from $13.00 to $6.00 in a report on Wednesday, July 10th. William Blair assumed coverage on shares of LegalZoom.com in a report on Monday, September 16th. They set a “market perform” rating for the company. JMP Securities reissued a “market perform” rating on shares of LegalZoom.com in a research note on Friday, September 13th. JPMorgan Chase & Co. decreased their price objective on LegalZoom.com from $9.00 to $8.00 and set a “neutral” rating for the company in a research note on Thursday, September 5th. Finally, Jefferies Financial Group raised LegalZoom.com from a “hold” rating to a “buy” rating and set a $8.00 target price on the stock in a research note on Wednesday, July 31st.

LegalZoom.com Price Performance

Shares of NASDAQ:LZ opened at $6.79 on Wednesday. The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of 61.73, a price-to-earnings-growth ratio of 2.03 and a beta of 1.10. The business’s fifty day moving average price is $6.42 and its two-hundred day moving average price is $8.25. LegalZoom.com has a fifty-two week low of $5.33 and a fifty-two week high of $13.74.

LegalZoom.com (NASDAQ:LZ) last issued its quarterly earnings data on Wednesday, August 7th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.01. LegalZoom.com had a net margin of 3.10% and a return on equity of 22.36%. The firm had revenue of $177.36 million for the quarter, compared to analysts’ expectations of $172.92 million. During the same period in the prior year, the firm earned $0.02 earnings per share. The company’s quarterly revenue was up 5.0% compared to the same quarter last year. Research analysts expect that LegalZoom.com will post 0.23 EPS for the current fiscal year.

Hedge Funds Weigh In On LegalZoom.com

Several hedge funds have recently modified their holdings of the stock. Quarry LP grew its stake in shares of LegalZoom.com by 318.9% in the second quarter. Quarry LP now owns 4,474 shares of the company’s stock valued at $38,000 after buying an additional 3,406 shares in the last quarter. Point72 DIFC Ltd acquired a new stake in LegalZoom.com in the second quarter valued at $71,000. Creative Planning bought a new position in shares of LegalZoom.com in the 3rd quarter valued at about $72,000. nVerses Capital LLC acquired a new position in shares of LegalZoom.com during the 2nd quarter worth about $114,000. Finally, Magnetar Financial LLC bought a new stake in shares of LegalZoom.com in the 2nd quarter valued at about $115,000. Institutional investors own 81.99% of the company’s stock.

About LegalZoom.com

LegalZoom.com, Inc, together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations.