Inc. (LZ) is looking forward to a strong quarter Inc. (NASDAQ: LZ) stock jumped 2.93% on Friday to $10.55 against a previous-day closing price of $10.25. With 1.24 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.52 million shares. During the session, the Specialty Business Services company that operates in wider Industrials sector, reached to the highest price of $10.66 whereas the lowest price it dropped to was $10.17. The 52-week range on LZ shows that it touched its highest point at $40.71 and its lowest point at $8.64 during that stretch. It currently has a 1-year price target of $16.14.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LZ was up-trending over the past week, with a rise of 2.63%, but this was down by -6.22% over a month. Three-month performance dropped to -28.57% while six-month performance fell -36.22%. The stock lost -71.91% in the past year, while it has lost -34.35% so far this year. A look at the trailing 12-month EPS for LZ yields -0.66 with Next year EPS estimates of 0.22. For the next quarter, that number is 0.02. This implies an EPS growth rate of 300.00% for this year and 188.00% for next year. EPS is expected to grow by 18.66% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -21.90%.

Float and Shares Shorts:

At present, 198.26 million LZ shares are outstanding with a float of 147.69 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.82 million, which was 4.96% higher than short shares on Jun 14, 2022. In addition to Mr. Daniel A. Wernikoff as the firm’s CEO & Director, Mr. Noel B. Watson serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 63.00% of LZ’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 15.82% of LZ, in contrast to 13.91% held by mutual funds. Shares owned by individuals account for 1.07%. As the largest shareholder in LZ with 4.82% of the stake, GPI Capital LP holds 9,541,916 shares worth 9,541,916. A second-largest stockholder of LZ, T. Rowe Price Associates, Inc., holds 8,988,235 shares, controlling over 4.54% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in LZ, holding 6,614,033 shares or 3.34% stake. With a 1.74% stake in LZ, the T Rowe Price New Horizons Fund is the largest stakeholder. A total of 3,437,609 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.62% of LZ stock, is the second-largest Mutual Fund holder. It holds 3,201,651 shares valued at 35.19 million. Vanguard Small Cap Index Fund holds 1.39% of the stake in LZ, owning 2,748,860 shares worth 30.21 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, LZ reported revenue of $154.21M and operating income of -$26.05M. Over the past year, revenue came in at $594.66M while operating income stood at -$106.78M. It generated -$30.61M net income for the quarter, which came to -$129.45M over the last twelve months. The EBITDA in the recently reported quarter was -$21.82M and diluted EPS was -$0.15. EBITDA for the full year was -$88.16M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LZ since 10 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LZ analysts setting a high price target of $24.00 and a low target of $9.00, the average target price over the next 12 months is $16.00. Based on these targets, LZ could surge 127.49% to reach the target high and fall by -14.69% to reach the target low. Reaching the average price target will result in a growth of 51.66% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LZ will report FY 2022 earnings on 03/09/2023. Analysts have provided yearly estimates in a range of $0.12 being high and $0.02 being low. For LZ, this leads to a yearly average estimate of $0.08. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Inc. surprised analysts by -$0.04 when it reported -$0.05 EPS against a consensus estimate of -$0.01. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.04 and the low estimate is -$0.04. The average estimate for the next quarter is thus $0.01.

Summary of Insider Activity:

Insiders traded LZ stock several times over the past three months with 8 Buys and 7 Sells. In these transactions, 6,542,179 shares were bought while 10,895,651 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 7,431,870 while 11,237,259 shares were sold.

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