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

Key Points

• Analyst sentiment is cautious: Eight brokerages give LegalZoom a consensus “Reduce” rating (three sells and five holds), with an average 12-month price target of $7.30.
• Latest quarterly results were mixed: Revenue of $195.15 million beat estimates and rose 2.6% year over year, while EPS of $0.19 matched consensus, though it fell short of one estimate cited in the article.
• LegalZoom indicated fiscal 2026 adjusted EBITDA of $180 million to $185 million, while flagging search pressure and targeted investments. Shares fell sharply after results, as investors weighed the modest growth and outlook.

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) has been assigned a consensus rating of "Reduce" from the eight brokerages that are currently covering the company, Marketbeat reports. Three research analysts have rated the stock with a sell rating and five have assigned a hold rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $7.30.

LZ has been the topic of a number of research analyst 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. JPMorgan Chase & Co. cut shares of LegalZoom.com from an "overweight" rating to a "neutral" rating and lowered their price objective for the stock from $8.00 to $7.00 in a research report on Thursday, August 6th. William Blair downgraded shares of LegalZoom.com from an "outperform" rating to a "market perform" rating in a research note on Thursday, August 6th. Finally, Weiss Ratings lowered shares of LegalZoom.com from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, October 29th.

Insider Buying and Selling at LegalZoom.com

In related news, CFO Noel Watson sold 416,371 shares of the firm's stock in a transaction on Thursday, August 20th. The stock was 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 $8,814,351.30. This trade represents a 21.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 value of $242,417.96. Following the sale, the insider owned 976,932 shares in the company, valued at approximately $5,382,895.32. This trade represents a 4.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 valued at $3,375,197 over the last quarter. Company insiders own 7.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Bank of America Corp DE grew its position in shares of LegalZoom.com by 187.4% in 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 buying an additional 1,636,487 shares during the last quarter. Principal Financial Group Inc. raised its position in shares of LegalZoom.com by 579.1% during the first quarter. Principal Financial Group Inc. now owns 1,010,914 shares of the company's stock worth $5,732,000 after acquiring an additional 862,045 shares during the last quarter. Empowered Funds LLC bought a new position in shares of LegalZoom.com during the first quarter worth about $2,918,000. Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of LegalZoom.com during the first quarter worth about $1,923,000. Finally, SEB Asset Management AB acquired a new position in shares of LegalZoom.com in the first quarter worth approximately $1,881,000. Institutional investors and hedge funds own 81.99% of the company's stock.

LegalZoom.com Trading Up 3.2%

Shares of LegalZoom.com stock opened at $6.91 on Thursday. The company has a 50 day moving average of $6.16 and a 200-day moving average of $6.53. LegalZoom.com has a 1-year low of $5.22 and a 1-year high of $12.40. The company has a market cap of $1.18 billion, a PE ratio of 76.72, a price-to-earnings-growth ratio of 1.26 and a beta of 1.16.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.19 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.19. The business had revenue of $195.15 million for the quarter, compared to analyst estimates of $193.83 million. LegalZoom.com had a net margin of 2.13% and a return on equity of 15.83%. The firm's revenue for the quarter was up 2.6% on a year-over-year basis. During the same quarter last year, the business posted $0.17 EPS. Research analysts forecast that LegalZoom.com will post 0.32 earnings per share for the current year.

Key Headlines 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 $193.83 million estimate and up 2.6% year over year. EPS of $0.19 also increased from $0.17 a year earlier. MarketBeat earnings report
• Neutral Sentiment: LegalZoom indicated adjusted EBITDA of $180 million to $185 million for fiscal 2026, while also citing pressure from search and targeted investments—factors investors may monitor for their effect on growth and costs. Seeking Alpha outlook report
• Negative Sentiment: Shares fell sharply following the results. While EPS matched the $0.19 consensus cited by some reports, it missed Zacks’ $0.21 estimate. The modest 2.6% revenue growth and the company’s flagged search pressure and investments may have outweighed the sales beat. Zacks earnings report

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.

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