First Trust Advisors LP Cuts Stock Holdings in LegalZoom.com, Inc. $LZ

First Trust Advisors LP reduced its stake in LegalZoom.com, Inc. (NASDAQ:LZ) by 28.5% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 530,673 shares of the company’s stock after selling 211,433 shares during the period. First Trust Advisors LP owned approximately 0.31% of LegalZoom.com worth $3,009,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in LZ. Arrowstreet Capital Limited Partnership increased its holdings in shares of LegalZoom.com by 20.8% in the third quarter. Arrowstreet Capital Limited Partnership now owns 4,408,170 shares of the company’s stock worth $45,757,000 after purchasing an additional 758,367 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in LegalZoom.com by 165.3% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,730,487 shares of the company’s stock valued at $37,044,000 after purchasing an additional 2,324,481 shares in the last quarter. Boston Partners raised its stake in LegalZoom.com by 81.0% during the fourth quarter. Boston Partners now owns 3,623,111 shares of the company’s stock valued at $36,054,000 after purchasing an additional 1,621,125 shares in the last quarter. Franklin Resources Inc. lifted its position in LegalZoom.com by 2.8% during the third quarter. Franklin Resources Inc. now owns 3,327,296 shares of the company’s stock valued at $34,537,000 after purchasing an additional 90,599 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in shares of LegalZoom.com by 3.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,112,895 shares of the company’s stock worth $17,650,000 after buying an additional 91,131 shares in the last quarter. Institutional investors own 81.99% of the company’s stock.

LegalZoom.com News Summary

Here are the key news stories impacting LegalZoom.com this week:

• Positive Sentiment: LegalZoom reported second-quarter revenue of $205.3 million, up 7% year over year, while subscription revenue rose 11% to $133.4 million. Adjusted EBITDA of $45.9 million exceeded the high end of company guidance, and the company repurchased $45.5 million of stock during the quarter. LegalZoom Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Quarterly earnings were $0.16 per share, exceeding the $0.15 analyst consensus and matching the company’s improving profitability trend. Net income reached $5.2 million, and LegalZoom ended the quarter with $167.2 million in cash, no debt, and $33.7 million in free cash flow. LegalZoom Surpasses Q2 Earnings Estimates
• Neutral Sentiment: Management said it is diversifying customer-acquisition channels because of an industry-wide shift in discovery away from traditional search, including changes associated with Google’s AI-powered search. This strategy could support longer-term growth but may create near-term uncertainty. LegalZoom Outlines 2026 Revenue Outlook
• Negative Sentiment: LegalZoom reduced its full-year 2026 revenue outlook to $795 million-$805 million, below the roughly $822 million consensus estimate. Third-quarter revenue guidance of $192 million-$196 million also trails the $204.4 million consensus, signaling a potentially slower growth rate ahead. LegalZoom 2026 Guidance
• Negative Sentiment: William Blair downgraded LZ from “outperform” to “market perform,” while JPMorgan reaffirmed its “neutral” rating and lowered its price target from $8 to $7. The analyst actions reinforce investor concerns about near-term growth and customer-acquisition risks. William Blair Downgrades LegalZoom

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Weiss Ratings restated a “sell (d+)” rating on shares of LegalZoom.com in a research report on Thursday, July 2nd. UBS Group reduced their price objective on LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, May 7th. Citigroup decreased their price objective on LegalZoom.com from $8.50 to $7.50 and set a “neutral” rating on the stock in a research report on Friday, May 22nd. Wall Street Zen raised LegalZoom.com from a “hold” rating to a “buy” rating in a research note on Tuesday, July 28th. Finally, William Blair cut LegalZoom.com from an “outperform” rating to a “market perform” rating in a report on Thursday. One investment analyst has rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, LegalZoom.com currently has an average rating of “Reduce” and an average target price of $8.08.

Insider Transactions at LegalZoom.com

In related news, insider Nicole Miller sold 19,199 shares of LegalZoom.com stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $6.58, for a total transaction of $126,329.42. Following the completion of the sale, the insider owned 1,119,222 shares in the company, valued at $7,364,480.76. This trade represents a 1.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Noel Bertram Watson sold 15,000 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $6.45, for a total transaction of $96,750.00. Following the completion of the sale, the chief financial officer directly owned 2,041,847 shares of the company’s stock, valued at approximately $13,169,913.15. This trade represents a 0.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 7.40% of the company’s stock.

LegalZoom.com Stock Performance

LZ opened at $5.66 on Friday. The stock’s 50 day moving average price is $6.75 and its 200-day moving average price is $6.73. LegalZoom.com, Inc. has a one year low of $5.22 and a one year high of $12.40. The stock has a market cap of $971.54 million, a price-to-earnings ratio of 62.89, a P/E/G ratio of 1.35 and a beta of 1.28.

LegalZoom.com (NASDAQ:LZ) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.15 by $0.01. LegalZoom.com had a return on equity of 14.78% and a net margin of 2.13%.The company had revenue of $205.29 million during the quarter, compared to analysts’ expectations of $205.83 million. During the same quarter in the previous year, the business earned $0.15 EPS. LegalZoom.com’s revenue was up 6.6% compared to the same quarter last year. As a group, analysts predict that LegalZoom.com, Inc. will post 0.34 earnings per share for the current fiscal year.

LegalZoom.com Profile

LegalZoom.com, Inc (NASDAQ: LZ) operates as a leading online legal technology company that provides a broad range of legal and business services to individuals, families and small businesses. Through its digital platform, the company offers customized legal documents and filing services, including business formation (LLCs, corporations and nonprofits), estate planning (wills and trusts), intellectual property protection (trademarks and copyrights), and ongoing compliance support. LegalZoom also connects customers with independent attorneys for consultations on matters such as family law, immigration and real estate.

Founded in 2001 by entrepreneurs Brian Lee, Brian P.