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

Key Points

• JPMorgan cut LegalZoom’s price target from $7 to $6 and maintained a neutral rating; at the reported share price of $5.95, the new target implied just 0.84% upside.
• Analyst sentiment is broadly cautious: MarketBeat reported an average “Reduce” rating, with five analysts at Hold and four at Sell. Bank of America also downgraded the stock to underperform.
• LegalZoom’s latest quarter showed modest growth: revenue of $195.15 million beat estimates and rose 2.6% year over year, while EPS of $0.19 matched consensus and increased from $0.17 a year earlier.

LegalZoom.com (NASDAQ:LZ - Get Free Report) had its price target cut by JPMorgan Chase & Co. from $7.00 to $6.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target points to a potential upside of 0.84% from the stock's current price.

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

LegalZoom.com Price Performance

Shares of LZ stock traded down $0.95 during midday trading on Thursday, hitting $5.95. The company had a trading volume of 5,335,565 shares, compared to its average volume of 2,998,311. The company's 50 day simple moving average is $6.16 and its 200 day simple moving average is $6.53. LegalZoom.com has a 52-week low of $5.10 and a 52-week high of $12.40. The stock 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 (NASDAQ:LZ - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.19 EPS for the quarter, hitting the consensus estimate of $0.19. LegalZoom.com had a return on equity of 15.83% and a net margin of 2.13%. The business had revenue of $195.15 million during the quarter, compared to analysts' expectations of $193.83 million. During the same quarter in the prior year, the business earned $0.17 earnings per share. The company's quarterly revenue was up 2.6% compared to the same quarter last year. Analysts anticipate that LegalZoom.com will post 0.32 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Noel Watson sold 416,371 shares of the business's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $5.91, for a total transaction of $2,460,752.61. Following the sale, the chief financial officer owned 1,491,430 shares of the company's stock, valued at approximately $8,814,351.30. The trade was a 21.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Nicole Miller sold 43,996 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $5.51, for a total transaction of $242,417.96. Following the sale, the insider directly owned 976,932 shares in the company, valued at approximately $5,382,895.32. This represents a 4.31% 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. Over the last ninety days, insiders have sold 577,475 shares of company stock worth $3,375,197. Corporate insiders own 7.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Maryland State Retirement & Pension System raised its holdings in LegalZoom.com by 56.9% in the 3rd quarter. Maryland State Retirement & Pension System now owns 25,631 shares of the company's stock valued at $144,000 after acquiring an additional 9,291 shares during the last quarter. StoneX Group Inc. acquired a new stake in shares of LegalZoom.com during the third quarter worth $85,000. CenterBook Partners LP boosted its holdings in shares of LegalZoom.com by 6.0% during the third quarter. CenterBook Partners LP now owns 362,629 shares of the company's stock worth $2,034,000 after purchasing an additional 20,412 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of LegalZoom.com in the third quarter valued at $503,000. Finally, Vise Technologies Inc. acquired a new position in LegalZoom.com in the third quarter valued at $169,000. 81.99% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting LegalZoom.com

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.

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