LegalZoom.com (NASDAQ:LZ) Shares Gap Down – Time to Sell?

LegalZoom.com, Inc. (NASDAQ:LZ)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $9.22, but opened at $8.58. LegalZoom.com shares last traded at $8.59, with a volume of 157,468 shares changing hands.

Analysts Set New Price Targets

A number of analysts have commented on LZ shares. JMP Securities restated a “market perform” rating on shares of LegalZoom.com in a research report on Friday, September 13th. Jefferies Financial Group upgraded shares of 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. William Blair started coverage on shares of LegalZoom.com in a research report on Monday, September 16th. They issued a “market perform” rating for the company. Finally, JPMorgan Chase & Co. restated an “underweight” rating and set a $8.00 price objective on shares of LegalZoom.com in a research report on Friday. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $9.79.

LegalZoom.com Price Performance

The firm’s 50-day moving average price is $6.83 and its 200-day moving average price is $7.61. The stock has a market cap of $1.49 billion, a P/E ratio of 65.31, a PEG ratio of 2.50 and a beta of 1.06.

LegalZoom.com (NASDAQ:LZ) last announced its quarterly earnings results on Wednesday, August 7th. The company reported $0.10 EPS for the quarter, topping the consensus estimate of $0.09 by $0.01. The business had revenue of $177.36 million for the quarter, compared to analysts’ expectations of $172.92 million. LegalZoom.com had a net margin of 3.61% and a return on equity of 28.39%. The business’s quarterly revenue was up 5.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.02 EPS. Sell-side analysts expect that LegalZoom.com, Inc. will post 0.24 earnings per share for the current year.

Hedge Funds Weigh In On LegalZoom.com

Institutional investors have recently added to or reduced their stakes in the company. Quarry LP lifted its position in LegalZoom.com by 318.9% during the second quarter. Quarry LP now owns 4,474 shares of the company’s stock valued at $38,000 after purchasing an additional 3,406 shares during the last quarter. Nisa Investment Advisors LLC raised its position in shares of LegalZoom.com by 179.8% during the 3rd quarter. Nisa Investment Advisors LLC now owns 6,099 shares of the company’s stock valued at $39,000 after buying an additional 3,919 shares in the last quarter. Point72 DIFC Ltd bought a new position in shares of LegalZoom.com in the 2nd quarter valued at about $71,000. Creative Planning purchased a new position in LegalZoom.com in the third quarter worth about $72,000. Finally, nVerses Capital LLC increased its stake in LegalZoom.com by 16.2% during the third quarter. nVerses Capital LLC now owns 15,800 shares of the company’s stock worth $100,000 after acquiring an additional 2,200 shares during the last quarter. Hedge funds and other 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.