What Happened:
Shares of online legal service provider LegalZoom (NASDAQ:LZ) jumped 11.4% in the morning session after analyst Andrew Boone of JMP Securities upgraded the stock's rating from Market Perform (Hold) to Market Outperform (Buy). The analyst's $14 target price indicates a potential 37% gain from where the shares trade now.
What is the market telling us:
LegalZoom's shares are somewhat volatile and over the last year have had 42 moves greater than 5%. But moves this big are very rare even for LegalZoom and that is indicating to us that this news had a significant impact on the market's perception of the business.
LegalZoom is up 28.3% since the beginning of the year, but at $10.14 per share it is still trading 34.4% below its 52-week high of $15.45 from May 2022. Investors who bought $1,000 worth of LegalZoom's shares at the IPO in June 2021 would now be looking at an investment worth $267.87.
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