LegalZoom.com, Inc (LZ) experienced a significant pre-market plunge of 5.11% following the release of its quarterly earnings report and subsequent analyst downgrades.
The company reported adjusted earnings of 17 cents per share for the quarter ended December 31, missing the mean analyst estimate of 18 cents. While revenue rose 17.7% to $190.27 million, beating expectations, the earnings miss appears to have disappointed investors.
Adding to the negative sentiment, multiple analysts cut their price targets on LegalZoom shares. Morgan Stanley reduced its target to $6.50 from $9 while maintaining an Underweight rating, Jefferies lowered its target to $10 from $15, and Barclays cut its target to $9 from $12. These downward revisions by major financial institutions contributed to the pre-market selling pressure.
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