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

First Trust Advisors LP reduced its position in LegalZoom.com, Inc. (NASDAQ:LZ) by 28.5% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 530,673 shares of the company’s stock after selling 211,433 shares during the quarter. First Trust Advisors LP’s holdings in LegalZoom.com were worth $3,009,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. increased its position in LegalZoom.com by 11,415.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock valued at $43,000 after purchasing an additional 7,534 shares during the period. Dimensional Fund Advisors LP lifted its position 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 purchasing an additional 91,131 shares during the period. SEB Asset Management AB purchased a new stake in shares of LegalZoom.com in the 1st quarter worth approximately $1,881,000. Allspring Global Investments Holdings LLC boosted its stake in shares of LegalZoom.com by 11.2% during the first quarter. Allspring Global Investments Holdings LLC now owns 27,012 shares of the company’s stock valued at $154,000 after purchasing an additional 2,716 shares in the last quarter. Finally, Bastion Asset Management Inc. bought a new position in shares of LegalZoom.com during the first quarter valued at approximately $1,093,000. 81.99% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, insider Nicole Miller sold 19,199 shares of the stock in a transaction on Tuesday, May 19th. The stock was 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 approximately $7,364,480.76. This represents a 1.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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, CEO Jeffrey M. Stibel acquired 125,000 shares of the stock in a transaction dated Monday, May 11th. The stock was acquired at an average cost of $6.15 per share, with a total value of $768,750.00. Following the transaction, the chief executive officer directly owned 2,955,609 shares in the company, valued at approximately $18,176,995.35. This represents a 4.42% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 7.40% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently commented on LZ shares. Citigroup reduced their price objective on shares of LegalZoom.com from $8.50 to $7.50 and set a “neutral” rating for the company in a research note on Friday, May 22nd. William Blair cut LegalZoom.com from an “outperform” rating to a “market perform” rating in a research report on Thursday. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $7.00 price target (down from $8.00) on shares of LegalZoom.com in a report on Thursday. Wall Street Zen raised LegalZoom.com from a “hold” rating to a “buy” rating in a research report on Tuesday, July 28th. Finally, UBS Group decreased their price objective on LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, May 7th. One analyst has rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, LegalZoom.com has an average rating of “Reduce” and an average target price of $8.08.

LegalZoom.com Stock Down 30.1%

NASDAQ LZ opened at $5.66 on Friday. The firm has a market cap of $971.54 million, a PE ratio of 62.89, a price-to-earnings-growth ratio of 1.35 and a beta of 1.28. The company has a 50 day moving average price of $6.75 and a 200 day moving average price of $6.73. LegalZoom.com, Inc. has a 52 week low of $5.22 and a 52 week high of $12.40.

LegalZoom.com (NASDAQ:LZ) last announced its earnings results on Wednesday, August 5th. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.15 by $0.01. LegalZoom.com had a net margin of 2.13% and a return on equity of 14.78%. The company had revenue of $205.29 million during the quarter, compared to the consensus estimate of $205.83 million. During the same period last year, the firm earned $0.15 earnings per share. LegalZoom.com’s revenue was up 6.6% compared to the same quarter last year. On average, equities research analysts anticipate that LegalZoom.com, Inc. will post 0.34 earnings per share for the current fiscal year.

Key Stories Impacting LegalZoom.com

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

About LegalZoom.com

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.