LegalZoom.com Gains Investor Traction as SG Americas Securities LLC Boosts Holdings
On Monday, May 10th, SG Americas Securities LLC reported an impressive increase of 119.2% in its holdings of LegalZoom.com, Inc. (NASDAQ:LZ) for the fourth quarter of 2020, according to the company’s recent 13F filings submitted to the Securities & Exchange Commission. As of the filing date, SG Americas Securities LLC held 60,350 shares worth $467,000 after acquiring an additional 32,815 shares in LegalZoom.com.
LegalZoom.com operates an online platform that provides legal and compliance solutions across the United States. The company offers products and services that range from business formations to estate planning documents, intellectual property protection to access to independent attorney advice services. Recently various analysts have voiced their opinion on LegalZoom.com.
Notably, Citigroup had reduced its price target for LegalZoom.com from $16.00 to $14.00 postulating a “buy” intention towards the company through a research report on March 31st; whereas JMP Securities upgraded LegalZoom.com’s outlook from “market perform” rating up to “outperform,” with a target price set at $14.00 on April 18th.
In contrast with these optimistic ratings presented by Citigroup and JMP Securities is Morgan Stanley’s dropped target price on LegalZoom.com from $8.00 to $7.50 in a negative research note issued on February 24th where an “underweight” rating was established on the stock; meanwhile Credit Suisse Group decreased its price target on LegalZoom.com from $15.00 down to $13.00 while holding an “outperform” rating since February 24th.
Despite mixed reviews amongst market experts regarding sensitive aspects relevant to investors such as pricing strategy and overall business vitality, two analysts hold sell ratings whereas four continue to promote a buy rating for the company indicating uncertainty in LegalZoom.com’s future trajectory. Bloomberg.com’s data currently records an average rating of “Hold” for LegalZoom.com with an average price target of $11.92.
As SG Americas Securities LLC continues to increase their holdings and investors remain split in their analysis, only time will tell whether this platform can withstand increasing competition and evolve amidst changing market demands.
LegalZoom.com Attracts Big-Name Investors and Maintains Growth Despite Turbulent Economic Conditions
LegalZoom.com, Inc. has attracted the attention of several big-name investors, with recent reports revealing that companies including MetLife Investment Management LLC and Royal Bank of Canada have purchased shares in the online legal and compliance platform. With hedge funds and institutional investors now holding a significant 69.36% stake in LegalZoom.com, the company’s profile is only set to increase further.
LegalZoom.com offers a range of legal solutions for individuals and businesses alike, from estate planning services through to tax preparation and bookkeeping facilities. Its innovative online platform has helped it carve out a growing niche within the corporate world, positioning itself as an affordable yet high-quality alternative to traditional legal firms.
Despite turbulent economic conditions over recent months, LegalZoom.com has remained steadfastly committed to driving growth across its operations. It posted earnings per share of $0.03 for the last quarter, beating market estimates by $0.02 in the process.
However, news that LegalZoom.com COO Richard Preece sold over 30k shares – at an average price of $8.09 for a total transaction value exceeding $244k – prompted speculation around the motives behind such a move. A similar sale by CFO Noel Bertram Watson appears to have followed later in March, further raising questions about possible changes among senior leadership.
Despite these developments that may cause concern among some investors ahead of Q2 reporting scheduled for August, however, there remains much optimism surrounding LegalZoom.com’s long-term prospects as it continues to enhance access to affordable legal solutions throughout online channels.