LegalZoom.com Inc (NASDAQ: LZ)’s stock price has soared by 1.10 in relation to previous closing price of 8.19. Nevertheless, the company has seen a gain of 4.55% in its stock price over the last five trading days. benzinga.com reported 2025-01-13 that LegalZoom.com Inc LZ could benefit from the positive inflection in business formations in November and December 2024, according to JPMorgan.
Is It Worth Investing in LegalZoom.com Inc (NASDAQ: LZ) Right Now?
The price-to-earnings ratio for LegalZoom.com Inc (NASDAQ: LZ) is above average at 62.49x. The 36-month beta value for LZ is also noteworthy at 1.12. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 1 rating it as “overweight,” 6 rating it as “hold,” and 1 rating it as “sell.”
The public float for LZ is 114.20M, and at present, short sellers hold a 2.83% of that float. The average trading volume of LZ on January 23, 2025 was 1.20M shares.
LZ’s Market Performance
LZ’s stock has seen a 4.55% increase for the week, with a 7.81% rise in the past month and a 18.62% gain in the past quarter. The volatility ratio for the week is 3.04%, and the volatility levels for the past 30 days are at 3.27% for LegalZoom.com Inc The simple moving average for the last 20 days is 5.36% for LZ’s stock, with a simple moving average of 3.52% for the last 200 days.
Analysts’ Opinion of LZ
Many brokerage firms have already submitted their reports for LZ stocks, with JP Morgan repeating the rating for LZ by listing it as a “Overweight.” The predicted price for LZ in the upcoming period, according to JP Morgan is $9 based on the research report published on January 13, 2025 of the current year 2025.
UBS, on the other hand, stated in their research note that they expect to see LZ reach a price target of $9. The rating they have provided for LZ stocks is “Neutral” according to the report published on December 06th, 2024.
JP Morgan gave a rating of “Underweight” to LZ, setting the target price at $8 in the report published on November 08th of the previous year.
LZ Trading at 3.75% 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 -39.74% of loss for the given period.
Volatility was left at 3.27%, however, over the last 30 days, the volatility rate increased by 3.04%, as shares surge +6.84% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +1.60% upper at present.
During the last 5 trading sessions, LZ rose by +4.55%, which changed the moving average for the period of 200-days by -37.03% in comparison to the 20-day moving average, which settled at $7.86. In addition, LegalZoom.com Inc saw 10.25% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at LZ starting from Wernikoff Daniel A, who proposed sale 226,190 shares at the price of $5.77 back on Aug 13 ’24. After this action, Wernikoff Daniel A now owns shares of LegalZoom.com Inc, valued at $1,306,051 using the latest closing price.
Miller Nicole, the CHIEF LEGAL OFFICER of LegalZoom.com Inc, sale 13,727 shares at $9.17 during a trade that took place back on May 17 ’24, which means that Miller Nicole is holding 338,956 shares at $125,877 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 0.04. The total capital return value is set at 0.44. Equity return is now at value 23.61, with 6.32 for asset returns.
Based on LegalZoom.com Inc (LZ), the company’s capital structure generated 0.12 points at debt to capital in total, while cash flow to debt ratio is standing at 14.36. The debt to equity ratio resting at 0.13. The interest coverage ratio of the stock is 67.36.
Currently, EBITDA for the company is 60.06 million with net debt to EBITDA at -1.4. When we switch over and look at the enterprise to sales, we see a ratio of 1.95. The receivables turnover for the company is 58.94for trailing twelve months and the total asset turnover is 1.95. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.60.
Conclusion
In summary, LegalZoom.com Inc (LZ) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others 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.
