LegalZoom.com Inc. (NASDAQ: LZ)’s stock price has plunge by 2.30relation to previous closing price of 8.03. Nevertheless, the company has seen a -2.67% plunge in its stock price over the last five trading sessions. fool.com reported 2024-06-06 that LegalZoom’s quarterly earnings report was in line with expectations. A difficult environment for small businesses is likely to create headaches for the online legal services provider.
Is It Worth Investing in LegalZoom.com Inc. (NASDAQ: LZ) Right Now?
LegalZoom.com Inc. (NASDAQ: LZ) has a price-to-earnings ratio of 75.99x that is above its average ratio. Additionally, the 36-month beta value for LZ is 1.09. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”
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The public float for LZ is 122.78M and currently, short sellers hold a 3.01% ratio of that float. The average trading volume of LZ on June 18, 2024 was 1.71M shares.
LZ’s Market Performance
LZ’s stock has seen a -2.67% decrease for the week, with a -9.23% drop in the past month and a -37.86% fall in the past quarter. The volatility ratio for the week is 3.08%, and the volatility levels for the past 30 days are at 3.88% for LegalZoom.com Inc. The simple moving average for the past 20 days is -3.22% for LZ’s stock, with a -25.01% simple moving average for the past 200 days.
Analysts’ Opinion of LZ
JP Morgan, on the other hand, stated in their research note that they expect to see LZ reach a price target of $14. The rating they have provided for LZ stocks is “Overweight” according to the report published on February 07th, 2024.
BofA Securities gave a rating of “Buy” to LZ, setting the target price at $12.25 in the report published on October 16th of the previous year.
LZ Trading at -20.43% from the 50-Day Moving Average
After a stumble in the market that brought LZ to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -47.61% of loss for the given period.
Volatility was left at 3.88%, however, over the last 30 days, the volatility rate increased by 3.08%, as shares sank -7.20% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -38.58% lower at present.
During the last 5 trading sessions, LZ fell by -3.79%, which changed the moving average for the period of 200-days by -28.83% in comparison to the 20-day moving average, which settled at $8.46. In addition, LegalZoom.com Inc. saw -27.30% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at LZ starting from Miller Nicole, who sale 13,727 shares at the price of $9.17 back on May 17 ’24. After this action, Miller Nicole now owns 338,956 shares of LegalZoom.com Inc., valued at $125,877 using the latest closing price.
Watson Noel Bertram, the Chief Financial Officer of LegalZoom.com Inc., sale 25,000 shares at $9.44 during a trade that took place back on May 16 ’24, which means that Watson Noel Bertram is holding 748,912 shares at $236,000 based on the most recent closing price.
Stock Fundamentals for LZ
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.63 for the gross margin
The net margin for LegalZoom.com Inc. stands at 0.03. The total capital return value is set at 0.17. Equity return is now at value 13.25, with 4.76 for asset returns.
Based on LegalZoom.com Inc. (LZ), the company’s capital structure generated 0.05 points at debt to capital in total, while cash flow to debt ratio is standing at 15.25. The debt to equity ratio resting at 0.05. The interest coverage ratio of the stock is 12.47.
Currently, EBITDA for the company is 52.96 million with net debt to EBITDA at -3.44. When we switch over and look at the enterprise to sales, we see a ratio of 1.99. The receivables turnover for the company is 42.54for trailing twelve months and the total asset turnover is 1.46. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.02.
Conclusion
In conclusion, LegalZoom.com Inc. (LZ) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
