Technicals Say LegalZoom.com Inc. (LZ) Is A Hold

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LegalZoom.com Inc. (NASDAQ:LZ) finished Wednesday with a subtraction of -$0.27 to close at $9.03, a downside of -2.85 percent. An average of 2,237,420 shares of common stock have been traded in the last five days. There was a fall of -$1.09 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 1,145,695 shares traded, while the 50-day average volume stands at 1,191,588.

LZ stock has decreased by -15.08% in the last month. The company shares reached their 1-month lowest point of $8.35 on 09/21/22. With the stock rallying to its 52-week high on 02/10/22, shares of the company touched a low of $8.64 and a high of $33.35 in 52 weeks. It has reached a new high 5 times so far this year and lost -43.78% or -$7.03 in price. In spite of this, the price is down -72.91% from the 52-week high.


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Insider Transactions

36 days have passed since LegalZoom.com Inc. (LZ) last reported insider trading activity. Preece Richard, who is Chief Operating Officer, most recently acquired $15,930 shares at $11.46 per share on Aug 17. In this transaction, the insider spent $182,637. Chief Financial Officer, Watson Noel Bertram, disposed of 23,643 shares at a price of $11.46 on Aug 17. The insider now owns more than $271,067 worth of shares. Prior to that, General Counsel Miller Nicole went on to Sale 12,632 shares at $11.46 each on Aug 17. An amount of $144,826 was transacted.

Valuation Metrics

LegalZoom.com Inc. (LZ) has a trailing price-to-sales (P/S) ratio at 3.02, the price-to-book (PB) ratio at 10.76, and the price-to-cash flow ratio at 83.11.

Financial Health

The quick ratio of LegalZoom.com Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Its gross profit as reported stood at $385.72 million compared to revenue of $575.08 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, LegalZoom.com Inc.’s return on assets was -24.10%.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$30.61 million in the quarter, while revenues were grew 100.0%. The analyst consensus anticipated LegalZoom.com Inc.’s latest quarter earnings to come in at $0.01 per share, but it turned out to be $0.05, a 400.00% surprise. For the quarter, EBITDA amounted to -$5.57 million. Shareholders own equity worth $194.56 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at LegalZoom.com Inc. (LZ) price momentum. RSI 9-day as of the close on 21 September was 28.65%, suggesting the stock is oversold, with historical volatility in this time frame at 44.19%.

As of today, LZ’s price is $9.59 -10.72% or -$1.09 from its 5-day moving average. LZ is currently trading -14.36% lower than its 20-day SMA and -39.57% lower than its 100-day SMA. However, the stock’s current price level is -7.43% below the SMA50 and -49.50% below the SMA200.

The stochastic %K and %D were 12.88% and 17.55%, respectively, and the average true range (ATR) was 0.61. With the 14-day stochastic at 20.15% and the average true range at 0.62, the RSI (14) stands at 34.76%. The stock has reached -0.86 on the 9-day MACD Oscillator while the 14-day reading was at -0.89.

Analyst Ratings

JMP Securities downgraded LegalZoom.com Inc. (NASDAQ: LZ) to a a Mkt perform rating in its most recent analyst report. Previously, the stock was rated as a Mkt outperform. The consensus rating for LegalZoom.com Inc. (LZ) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell LZ, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 4 others rate it as a “buy”.

What is LZ’s price target for the next 12 months?

Analysts predict a range of price targets between $7.00 and $19.00, with a median target of $15.00. Taking a look at these predictions, the average price target given by analysts for LegalZoom.com Inc. (LZ) stock is $14.00.

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