LegalZoom.com (NASDAQ:LZ) Stock Gets Price Target Trim from JPMorgan Chase & Co.

LegalZoom.com (NASDAQ:LZ) had its price objective trimmed by JPMorgan Chase & Co. from $7.00 to $6.00 in a research note published on Thursday morning,Benzinga reports. The firm currently has a neutral rating on the stock.

A number of other research firms also recently weighed in on LZ. William Blair downgraded LegalZoom.com from an “outperform” rating to a “market perform” rating in a report on Thursday, August 6th. Wall Street Zen upgraded LegalZoom.com from a “hold” rating to a “buy” rating in a research note on Saturday, September 26th. Bank of America lowered LegalZoom.com from a “buy” rating to an “underperform” rating in a research report on Thursday. Finally, Weiss Ratings cut LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, October 29th. Five equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $7.10.

LegalZoom.com Trading Down 11.9%

Shares of LZ opened at $5.24 on Thursday. The firm’s 50-day moving average price is $6.15 and its 200-day moving average price is $6.50. The firm has a market capitalization of $865.44 million, a price-to-earnings ratio of 43.67, a PEG ratio of 0.98 and a beta of 1.16. LegalZoom.com has a 1-year low of $5.10 and a 1-year high of $10.88.

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

Insider Activity

In related news, CFO Noel Watson sold 83,629 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $5.83, for a total transaction of $487,557.07. Following the sale, the chief financial officer owned 1,407,801 shares of the company’s stock, valued at $8,207,479.83. The trade was a 5.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Nicole Miller sold 33,479 shares of the company’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $5.51, for a total transaction of $184,469.29. Following the completion of the sale, the insider owned 943,453 shares in the company, valued at approximately $5,198,426.03. This trade represents a 3.43% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold 577,475 shares of company stock worth $3,375,197 in the last three months. 7.40% of the stock is currently owned by insiders.

Institutional Trading of LegalZoom.com

A number of hedge funds have recently made changes to their positions in LZ. Squarepoint Ops LLC boosted its stake in LegalZoom.com by 289.3% in the 2nd quarter. Squarepoint Ops LLC now owns 269,974 shares of the company’s stock worth $1,655,000 after purchasing an additional 200,618 shares in the last quarter. Bank of America Corp DE grew its position in LegalZoom.com by 187.4% during the 1st quarter. Bank of America Corp DE now owns 2,509,891 shares of the company’s stock valued at $14,231,000 after purchasing an additional 1,636,487 shares during the last quarter. Pacer Advisors Inc. grew its position in LegalZoom.com by 53.6% during the 1st quarter. Pacer Advisors Inc. now owns 926,425 shares of the company’s stock valued at $5,253,000 after purchasing an additional 323,201 shares during the last quarter. Walleye Capital LLC increased its stake in LegalZoom.com by 172.5% during the 1st quarter. Walleye Capital LLC now owns 354,031 shares of the company’s stock valued at $2,007,000 after purchasing an additional 224,100 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund bought a new stake in LegalZoom.com during the 1st quarter valued at about $1,923,000. 81.99% of the stock is owned by institutional investors.

Trending Headlines about LegalZoom.com

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.