LegalZoom.com (NASDAQ:LZ) Shares Gap Down - Should You Sell?

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) 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.

Wall Street Analyst Weigh In

Several brokerages have commented on LZ. William Blair began coverage on LegalZoom.com in a research note on Monday, September 16th. They set a "market perform" rating for the company. JPMorgan Chase & Co. reissued an "underweight" rating and set a $8.00 target price on shares of LegalZoom.com in a research note on Friday. Jefferies Financial Group raised LegalZoom.com from a "hold" rating to a "buy" rating and set a $8.00 price objective for the company in a research note on Wednesday, July 31st. Finally, JMP Securities reaffirmed a "market perform" rating on shares of LegalZoom.com in a research note on Friday, September 13th. Three equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company's stock. According to MarketBeat, LegalZoom.com presently has an average rating of "Hold" and an average target price of $9.79.

LegalZoom.com Stock Down 7.9 %

The company has a 50 day moving average price of $6.80 and a 200-day moving average price of $7.66. The company has a market cap of $1.49 billion, a price-to-earnings ratio of 65.08, a P/E/G ratio of 2.22 and a beta of 1.06.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last announced its earnings results on Wednesday, August 7th. The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.09 by $0.01. LegalZoom.com had a return on equity of 22.36% and a net margin of 3.10%. The business 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 business posted $0.02 earnings per share. The firm's revenue was up 5.0% on a year-over-year basis. On average, analysts forecast that LegalZoom.com, Inc. will post 0.23 EPS for the current fiscal year.

Institutional Trading of LegalZoom.com

Several institutional investors have recently added to or reduced their stakes in the stock. Quarry LP boosted its holdings in shares of LegalZoom.com by 318.9% during the 2nd quarter. Quarry LP now owns 4,474 shares of the company's stock worth $38,000 after buying an additional 3,406 shares in the last quarter. Nisa Investment Advisors LLC boosted its holdings 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 worth $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 during the 2nd quarter worth approximately $71,000. Creative Planning bought a new position in shares of LegalZoom.com during the 3rd quarter worth approximately $72,000. Finally, Ameritas Investment Partners Inc. boosted its holdings in shares of LegalZoom.com by 8.8% during the 1st quarter. Ameritas Investment Partners Inc. now owns 13,345 shares of the company's stock worth $178,000 after buying an additional 1,074 shares in the last quarter. 81.99% of the stock is currently owned by institutional investors.

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.