UBS Group Cuts LegalZoom.com (NASDAQ:LZ) Price Target to $7.00

Key Points

• UBS Group cut LegalZoom's price target from $8 to $7 and kept a neutral rating, implying roughly a 15.3% upside from the current price.
• Shares traded at $6.07 (down 3.3%) with a $1.05 billion market cap, while analysts remain mixed—the consensus target is $9.25 with ratings split among buys, holds and sells.
• LegalZoom's latest quarter showed revenue growth and a modest beat, but EPS slightly missed estimates and guidance was a touch soft; the board authorized a $100M buyback (up to 8.1% of shares).

LegalZoom.com (NASDAQ:LZ - Get Free Report) had its price objective lowered by stock analysts at UBS Group from $8.00 to $7.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. UBS Group's price objective would suggest a potential upside of 15.32% from the stock's current price.

A number of other brokerages have also commented on LZ. Barclays reissued an "underweight" rating and set a $6.00 price target (down from $9.00) on shares of LegalZoom.com in a report on Wednesday, March 4th. Weiss Ratings lowered LegalZoom.com from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, April 6th. Zacks Research raised LegalZoom.com from a "strong sell" rating to a "hold" rating in a report on Monday, February 23rd. Finally, JPMorgan Chase & Co. lowered their price target on LegalZoom.com from $14.00 to $11.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, LegalZoom.com presently has an average rating of "Hold" and an average target price of $9.25.

LegalZoom.com Stock Down 3.3%

NASDAQ LZ traded down $0.21 during trading hours on Thursday, hitting $6.07. The company had a trading volume of 5,704,969 shares, compared to its average volume of 3,215,468. The firm has a market cap of $1.05 billion, a P/E ratio of 75.88, a price-to-earnings-growth ratio of 1.45 and a beta of 1.33. LegalZoom.com has a fifty-two week low of $5.28 and a fifty-two week high of $12.40. The business has a fifty day simple moving average of $6.26 and a 200-day simple moving average of $8.25.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The company reported $0.17 EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.01). The business had revenue of $190.27 million for the quarter, compared to analyst estimates of $184.85 million. LegalZoom.com had a net margin of 2.04% and a return on equity of 6.35%. LegalZoom.com's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period last year, the business posted $0.19 earnings per share. Equities analysts forecast that LegalZoom.com will post 0.27 EPS for the current fiscal year.

LegalZoom.com declared that its Board of Directors has authorized a stock buyback plan on Thursday, February 19th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to reacquire up to 8.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, CFO Noel Bertram Watson sold 15,000 shares of the firm's stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $6.96, for a total transaction of $104,400.00. Following the completion of the transaction, the chief financial officer owned 1,480,860 shares of the company's stock, valued at $10,306,785.60. This trade represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Nicole Miller sold 23,325 shares of the firm's stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $6.63, for a total value of $154,644.75. Following the transaction, the insider directly owned 813,033 shares of the company's stock, valued at $5,390,408.79. This represents a 2.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 5.90% of the company's stock.

Hedge Funds Weigh In On LegalZoom.com

A number of hedge funds and other institutional investors have recently modified their holdings of LZ. Brighton Jones LLC acquired a new position in shares of LegalZoom.com in the 4th quarter valued at $185,000. Amundi acquired a new position in shares of LegalZoom.com in the 1st quarter valued at $196,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of LegalZoom.com by 3.0% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,980 shares of the company's stock valued at $646,000 after purchasing an additional 2,161 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of LegalZoom.com by 9.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,313,429 shares of the company's stock valued at $11,309,000 after purchasing an additional 113,769 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of LegalZoom.com by 1.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 275,978 shares of the company's stock valued at $2,376,000 after purchasing an additional 4,607 shares during the period. Institutional investors and hedge funds own 81.99% of the company's stock.

More LegalZoom.com News

Here are the key news stories impacting LegalZoom.com this week:

• Positive Sentiment: Q1 top-line strength, cash flow and buybacks — LegalZoom reported revenue of $206.8M (up ~13% YoY), delivered $41.0M in free cash flow, adjusted EBITDA of $36.5M, ended the quarter with ~$183M cash and completed $43.5M of share repurchases, and has no debt — supportive for margins and shareholder returns. LegalZoom Reports First Quarter Financial Results
• Positive Sentiment: Product innovation could boost SMB retention and ARPU — LegalZoom unveiled an AI‑powered Virtual Mail product for small businesses, which could drive higher-value subscription adoption and improve margins over time. LegalZoom Reinvents Virtual Mail with AI
• Neutral Sentiment: Earnings materials and management commentary available — The earnings slide deck and call transcript provide detail on product mix, subscription trends and margin drivers that investors will parse for forward momentum. Q1 Results Presentation Earnings Call Transcript
• Neutral Sentiment: Valuation comparison context — Analysts have published comparative takes (e.g., vs. Fastenal) for value investors assessing LZ’s growth vs. industrial peers; useful but not determinative for near‑term price moves. LZ vs. FAST: Which Stock Is the Better Value Option?
• Negative Sentiment: EPS missed and guidance mixed — Reported EPS (~$0.12) slightly missed estimates (~$0.13), and management issued Q2 revenue guidance of $203M–$207M (versus Street ~$207.6M) and FY revenue $810M–$830M (vs. consensus ~$817.8M). The EPS miss plus a Q2 midpoint a touch below consensus likely pressured the stock. LegalZoom Q1 Earnings Lag Estimates
• Negative Sentiment: Small near-term execution risk — Despite revenue beat, the margin-neutral EPS shortfall and slightly softer Q2 guidance increase short‑term execution scrutiny (customer conversion, ARPU, and margin trends). LegalZoom: Q1 Earnings Snapshot

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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