LegalZoom.com (NASDAQ:LZ) Rating Lowered to Hold at Wall Street Zen

LegalZoom.com (NASDAQ:LZ) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Saturday, Wall Street Zen reports.

A number of other research firms have also commented on LZ. JPMorgan Chase & Co. cut their price objective on shares of LegalZoom.com from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Thursday. William Blair cut shares of LegalZoom.com from an “outperform” rating to a “market perform” rating in a research note on Thursday, August 6th. Weiss Ratings lowered shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 29th. Finally, Bank of America cut shares of LegalZoom.com from a “buy” rating to an “underperform” rating in a research note on Thursday. Five equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, LegalZoom.com has a consensus rating of “Reduce” and a consensus target price of $7.10.

LegalZoom.com Stock Performance

Shares of LZ opened at $5.24 on Friday. LegalZoom.com has a 52-week low of $5.10 and a 52-week high of $10.88. The stock’s 50-day simple moving average is $6.15 and its 200 day simple moving average is $6.50. The stock has a market capitalization of $865.44 million, a price-to-earnings ratio of 43.67, a price-to-earnings-growth ratio of 1.75 and a beta of 1.16.

LegalZoom.com (NASDAQ:LZ) last posted its earnings results on Wednesday, November 4th. The company reported $0.19 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.19. LegalZoom.com had a return on equity of 23.63% and a net margin of 2.56%. The business had revenue of $195.15 million during the quarter, compared to analyst estimates of $193.83 million. During the same quarter in the previous year, the firm earned $0.17 EPS. The company’s quarterly revenue was up 2.6% compared to the same quarter last year. On average, research analysts forecast that LegalZoom.com will post 0.32 earnings per share for the current fiscal year.

Insider Activity

In other LegalZoom.com news, insider Nicole Miller sold 43,996 shares of the firm’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $5.51, for a total value of $242,417.96. Following the sale, the insider owned 976,932 shares of the company’s stock, valued at $5,382,895.32. This trade represents a 4.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 Watson sold 416,371 shares of the firm’s stock in a transaction dated 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 completion of the sale, the chief financial officer directly owned 1,491,430 shares in the company, valued at approximately $8,814,351.30. The trade was a 21.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 577,475 shares of company stock valued at $3,375,197. 7.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Allworth Financial LP increased its position in shares of LegalZoom.com by 255.1% during the 2nd quarter. Allworth Financial LP now owns 5,014 shares of the company’s stock valued at $31,000 after purchasing an additional 3,602 shares during the last quarter. PNC Financial Services Group Inc. lifted its position in LegalZoom.com by 11,415.2% in the 1st quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock worth $43,000 after buying an additional 7,534 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in LegalZoom.com in the 2nd quarter worth approximately $47,000. Cetera Investment Advisers purchased a new stake in LegalZoom.com in the first quarter worth approximately $58,000. Finally, Headlands Technologies LLC purchased a new stake in LegalZoom.com in the second quarter worth approximately $67,000. Hedge funds and other institutional investors own 81.99% of the company’s stock.

LegalZoom.com News Roundup

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

• Positive Sentiment: Q3 revenue of $195.15 million topped the $193.83 million estimate, while earnings of $0.19 per share matched the reported consensus and rose from $0.17 a year earlier. Q3 earnings results
• Neutral Sentiment: LegalZoom projected $180 million–$185 million in adjusted EBITDA for 2026, while noting pressure from search and targeted investments. 2026 EBITDA outlook
• Negative Sentiment: Business-formation volume fell 13% year over year to 110,000, a sign of weaker demand; human-in-the-loop subscriptions accounted for 49% of Q3 revenue. Long-term investor takeaways
• Negative Sentiment: Bank of America cut its rating from Buy to Underperform. JPMorgan lowered its price target from $7 to $6 and kept a Neutral rating, adding to concerns about the outlook. Stock crosses below 200-day moving average after downgrade

LegalZoom.com Company Profile

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.