LegalZoom.com, Inc. (NASDAQ:LZ) Stock Has Consensus Price Target of $7.30

Shares of LegalZoom.com, Inc. (NASDAQ:LZ) have earned an average recommendation of “Reduce” from the nine brokerages that are covering the company, MarketBeat.com reports. Four equities research analysts have rated the stock with a sell recommendation and five have given a hold recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $7.10.

A number of research analysts have recently commented on the company. William Blair cut LegalZoom.com from an “outperform” rating to a “market perform” rating in a research report on Thursday, August 6th. Wall Street Zen lowered LegalZoom.com from a “buy” rating to a “hold” rating in a report on Saturday. JPMorgan Chase & Co. decreased their price objective on LegalZoom.com from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Thursday. Bank of America cut LegalZoom.com from a “buy” rating to an “underperform” rating in a research note on Thursday. Finally, Weiss Ratings downgraded shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 29th.

Insider Activity at LegalZoom.com

In related news, insider Nicole Miller sold 33,479 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $5.51, for a total transaction of $184,469.29. Following the sale, the insider directly owned 943,453 shares in the company, valued at approximately $5,198,426.03. This represents a 3.43% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed 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, CFO Noel Watson sold 83,629 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $5.83, for a total transaction of $487,557.07. Following the completion of the transaction, the chief financial officer directly owned 1,407,801 shares of the company’s stock, valued at approximately $8,207,479.83. This trade represents a 5.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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.

Institutional Investors Weigh In On LegalZoom.com

Several institutional investors have recently made changes to their positions in LZ. Allspring Global Investments Holdings LLC lifted its holdings in LegalZoom.com by 11.2% in the first quarter. Allspring Global Investments Holdings LLC now owns 27,012 shares of the company’s stock valued at $154,000 after acquiring an additional 2,716 shares during the period. Allworth Financial LP lifted its stake in shares of LegalZoom.com by 255.1% in 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 period. Arkadios Wealth Advisors boosted its holdings in LegalZoom.com by 5.6% during the first quarter. Arkadios Wealth Advisors now owns 74,819 shares of the company’s stock worth $424,000 after buying an additional 3,953 shares in the last quarter. PNC Financial Services Group Inc. boosted its holdings in 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 worth $43,000 after buying an additional 7,534 shares in the last quarter. Finally, Integrated Wealth Concepts LLC purchased a new stake in LegalZoom.com during the second quarter worth $47,000. 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 Stock Down 11.9%

Shares of LZ stock opened at $5.24 on Thursday. The firm has a market cap of $865.44 million, a P/E ratio of 43.67, a PEG ratio of 0.98 and a beta of 1.16. The company has a 50 day moving average of $6.15 and a 200-day moving average of $6.50. LegalZoom.com has a 12-month low of $5.10 and a 12-month high of $10.88.

LegalZoom.com (NASDAQ:LZ) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $0.19 earnings per share for the quarter, meeting the consensus estimate 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 period in the prior year, the company earned $0.17 earnings per share. LegalZoom.com’s revenue was up 2.6% compared to the same quarter last year. As a group, equities analysts expect that LegalZoom.com will post 0.32 EPS for the current year.

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.