LegalZoom.com, Inc. (NASDAQ:LZ) shares are tanking Wednesday after the company announced a CEO transition and lowered its full-year guidance.
The Details:
After Tuesday's closing bell, LegalZoom announced its current CEO Dan Wernikoff is stepping down and resigning from the company’s board of directors. The company said the Board of Directors Chairman, Jeffrey Stibel, was named LegalZoom's next CEO, effective immediately.
The company also cut its revenue guidance for the full year to a range of $675 million to $685 million, versus the $710.353 million estimate, and its free cash flow expectation for the full year to a range of $75 million to $85 million.
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The company reiterated its second-quarter revenue guidance to be in the range of $172 million to $176 million and adjusted EBITDA in the range of $25 million to $27 million.
B of A Securities analyst Michael McGovern downgraded LegalZoom from Buy to Underperform and lowered the price target from $13 to $6 following the company's announcement. JP Morgan also downgraded the stock from Overweight to Neutral and lowered its price target from $14 to $9.
LegalZoom shares are down nearly 30% on heavy trading volume Wednesday with more than 2.9 million shares already traded, according to data from Benzinga Pro.
Will LZ Stock Go Up?
When trying to assess whether or not LegalZoom will trade higher from current levels, it's a good idea to take a look at analyst forecasts.
In the last month, 3 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering LegalZoom.com have performed in recent history.
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. LegalZoom.com is 56.71% down year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about LegalZoom.com, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.
LZ Price Action: According to Benzinga Pro, LegalZoom shares are down 29.6% at $5.53 at the time of publication Wednesday.
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