LegalZoom.com (NASDAQ:LZ) Stock Price Target Lowered at JPMorgan Chase & Co.

LegalZoom.com (NASDAQ:LZ) had its price objective lowered by equities research analysts at JPMorgan Chase & Co. from $7.00 to $6.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm currently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price objective would suggest a potential upside of 0.84% from the stock’s current price.

LZ has been the topic of a number of other research reports. Weiss Ratings downgraded LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, October 29th. William Blair lowered LegalZoom.com from an “outperform” rating to a “market perform” rating in a research note on Thursday, August 6th. Bank of America downgraded LegalZoom.com from a “buy” rating to an “underperform” rating in a report on Thursday. Finally, Wall Street Zen raised LegalZoom.com from a “hold” rating to a “buy” rating in a research note on Saturday, September 26th. Five equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $7.10.

LegalZoom.com Price Performance

NASDAQ:LZ traded down $0.95 during trading hours on Thursday, reaching $5.95. 5,335,565 shares of the company were exchanged, compared to its average volume of 2,998,311. The firm has a market cap of $1.02 billion, a price-to-earnings ratio of 66.11, a PEG ratio of 1.26 and a beta of 1.16. LegalZoom.com has a 52-week low of $5.10 and a 52-week high of $12.40. The stock has a 50 day simple moving average of $6.16 and a 200 day simple moving average of $6.53.

LegalZoom.com (NASDAQ:LZ) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $0.19 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.19. The company had revenue of $195.15 million during the quarter, compared to analysts’ expectations of $193.83 million. LegalZoom.com had a net margin of 2.13% and a return on equity of 15.83%. The business’s quarterly revenue was up 2.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.17 EPS. On average, analysts predict that LegalZoom.com will post 0.32 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Noel Watson sold 416,371 shares of the firm’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $5.91, for a total value of $2,460,752.61. Following the transaction, the chief financial officer owned 1,491,430 shares of the company’s stock, valued at approximately $8,814,351.30. This trade represents a 21.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Nicole Miller sold 43,996 shares of LegalZoom.com stock in a transaction on Monday, August 17th. The shares were sold at an average price of $5.51, for a total transaction of $242,417.96. Following the transaction, the insider owned 976,932 shares in the company, valued at $5,382,895.32. The trade was a 4.31% decrease in their position. 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. In the last three months, insiders sold 577,475 shares of company stock worth $3,375,197. Insiders own 7.40% of the company’s stock.

Hedge Funds Weigh In On LegalZoom.com

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP increased its position in LegalZoom.com by 255.1% in the second quarter. Allworth Financial LP now owns 5,014 shares of the company’s stock worth $31,000 after buying an additional 3,602 shares during the period. PNC Financial Services Group Inc. boosted its holdings in shares of LegalZoom.com by 11,415.2% during the first quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock valued at $43,000 after acquiring an additional 7,534 shares during the period. Integrated Wealth Concepts LLC acquired a new position in shares of LegalZoom.com during the second quarter valued at $47,000. Cetera Investment Advisers acquired a new position in shares of LegalZoom.com during the first quarter valued at $58,000. Finally, Headlands Technologies LLC bought a new position in shares of LegalZoom.com during the second quarter worth about $67,000. 81.99% of the stock is owned by hedge funds and other institutional investors.

LegalZoom.com News Summary

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

• Positive Sentiment: Third-quarter revenue was $195.15 million, above the roughly $193.83 million estimate, and rose 2.6% year over year. EPS of $0.19 was up from $0.17 a year earlier. Quarterly results
• Neutral Sentiment: LegalZoom forecast $180 million to $185 million in adjusted EBITDA for 2026, while citing pressure from search and targeted investments. The outlook provides a profitability benchmark, but the reported pressures may weigh on expectations. 2026 outlook and business pressures
• Neutral Sentiment: A report cited a $7.30 consensus price target, which may indicate analysts see potential upside, though a target is not a guarantee and does not offset near-term operating concerns. Consensus target price report
• Negative Sentiment: Bank of America cut its rating on LZ from “buy” to “underperform,” a clear negative analyst signal. Bank of America rating information
• Negative Sentiment: Business-formation volume fell 13% year over year to 110,000. Although human-in-the-loop subscriptions accounted for 49% of third-quarter revenue, declining formation activity raises concerns about demand and growth. Long-term investor takeaways
• Negative Sentiment: EPS met the $0.19 consensus cited by one report but fell short of Zacks’ $0.21 estimate, underscoring that the earnings picture depends on which analyst benchmark is used. Zacks earnings estimate comparison

About LegalZoom.com

LegalZoom.com, Inc is an online platform that provides legal, compliance and tax-related products and services to individuals, families and small businesses. The company’s platform is designed to make common legal and administrative processes more accessible through digital tools, guided services and access to independent professionals.

LegalZoom’s offerings include business formation services for limited liability companies and corporations, registered-agent services, annual compliance support, business licensing and trademark services.