Bank of New York Mellon Corp Increases Position in LegalZoom.com, Inc. $LZ

Key Points

• Bank of New York Mellon increased its LegalZoom stake by 59.5% in the first quarter to 722,649 shares, while institutional investors collectively owned 81.99% of the company.
• LegalZoom’s second-quarter results were mixed: revenue rose 6.6% year over year to $205.3 million and adjusted earnings of $0.16 per share topped estimates, but the company lowered its full-year 2026 revenue outlook to $795 million–$805 million.
• Analyst sentiment remains cautious, with an average “Reduce” rating and an $8.08 consensus price target; UBS, JPMorgan, and Citigroup recently lowered their targets, while William Blair downgraded the stock to “market perform.”

Bank of New York Mellon Corp lifted its position in LegalZoom.com, Inc. (NASDAQ:LZ - Free Report) by 59.5% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 722,649 shares of the company's stock after acquiring an additional 269,666 shares during the period. Bank of New York Mellon Corp owned 0.42% of LegalZoom.com worth $4,097,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in LZ. EverSource Wealth Advisors LLC boosted its position in LegalZoom.com by 976.4% in the second quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company's stock valued at $41,000 after buying an additional 4,140 shares during the last quarter. Osaic Holdings Inc. lifted its stake in LegalZoom.com by 477.3% during the 2nd quarter. Osaic Holdings Inc. now owns 4,555 shares of the company's stock valued at $41,000 after acquiring an additional 3,766 shares during the period. Parallel Advisors LLC boosted its holdings in shares of LegalZoom.com by 8,589.8% in the 3rd quarter. Parallel Advisors LLC now owns 5,127 shares of the company's stock valued at $53,000 after acquiring an additional 5,068 shares during the last quarter. Parkside Financial Bank & Trust increased its stake in shares of LegalZoom.com by 91.4% in the fourth quarter. Parkside Financial Bank & Trust now owns 7,433 shares of the company's stock worth $74,000 after acquiring an additional 3,550 shares during the period. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of LegalZoom.com in the fourth quarter worth $74,000. Hedge funds and other institutional investors own 81.99% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on LZ. UBS Group reduced their target price on shares of LegalZoom.com from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, May 7th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $7.00 price target (down from $8.00) on shares of LegalZoom.com in a research report on Thursday. Citigroup reduced their price objective on LegalZoom.com from $8.50 to $7.50 and set a "neutral" rating for the company in a research note on Friday, May 22nd. Wall Street Zen raised LegalZoom.com from a "hold" rating to a "buy" rating in a report on Tuesday, July 28th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of LegalZoom.com in a report on Thursday, July 2nd. 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 stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $8.08.

LegalZoom.com News Summary

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

LegalZoom.com Stock Performance

LZ opened at $5.66 on Friday. LegalZoom.com, Inc. has a fifty-two week low of $5.22 and a fifty-two week high of $12.40. The company has a fifty day moving average of $6.75 and a two-hundred day moving average of $6.73. The stock has a market capitalization of $971.54 million, a price-to-earnings ratio of 62.89, a PEG ratio of 1.35 and a beta of 1.28.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.15 by $0.01. LegalZoom.com had a net margin of 2.13% and a return on equity of 14.78%. The business had revenue of $205.29 million during the quarter, compared to the consensus estimate of $205.83 million. During the same quarter in the prior year, the firm posted $0.15 earnings per share. The company's revenue was up 6.6% compared to the same quarter last year. On average, equities research analysts forecast that LegalZoom.com, Inc. will post 0.34 earnings per share for the current year.

Insider Buying and Selling

In other LegalZoom.com news, CEO Jeffrey M. Stibel purchased 125,000 shares of LegalZoom.com stock in a transaction that occurred on Monday, May 11th. The stock was bought at an average price of $6.15 per share, with a total value of $768,750.00. Following the acquisition, the chief executive officer owned 2,955,609 shares of the company's stock, valued at $18,176,995.35. This trade represents a 4.42% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Nicole Miller sold 19,199 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $6.58, for a total value of $126,329.42. Following the transaction, the insider owned 1,119,222 shares in the company, valued at $7,364,480.76. This represents a 1.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. 7.40% of the stock is currently owned by insiders.

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.

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