LegalZoom.com, Inc. (NASDAQ:LZ – Get Free Report) shares reached a new 52-week low on Thursday after Bank of America downgraded the stock from a buy rating to an underperform rating. The company traded as low as $5.10 and last traded at $5.8940, with a volume of 451,246 shares changing hands. The stock had previously closed at $6.90.
Several other brokerages also recently commented on LZ. Weiss Ratings downgraded shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, October 29th. JPMorgan Chase & Co. lowered shares of LegalZoom.com from an “overweight” rating to a “neutral” rating and cut their target price for the company from $8.00 to $7.00 in a research report on Thursday, August 6th. Wall Street Zen raised shares of LegalZoom.com from a “hold” rating to a “buy” rating in a research note on Saturday, September 26th. Finally, William Blair downgraded shares of LegalZoom.com from an “outperform” rating to a “market perform” rating in a report on Thursday, August 6th. Five equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $7.30.
Read Our Latest Stock Analysis on LZ
Insider Activity
In other news, insider Nicole Miller sold 33,479 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was 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. The trade was a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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 company’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $5.83, for a total value 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 $8,207,479.83. This represents a 5.61% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 577,475 shares of company stock worth $3,375,197. Company insiders own 7.40% of the company’s stock.
Key Headlines Impacting LegalZoom.com
Here are the key news stories impacting LegalZoom.com this week:
- Positive Sentiment: Q3 revenue was $195.15 million, above the $193.83 million estimate, and rose 2.6% year over year. EPS of $0.19 matched the consensus cited in the earnings report, while profit increased from $0.17 a year earlier. Article: LegalZoom Q3 profit rises
- Neutral Sentiment: The consensus analyst price target was reported at $7.30. That is a reference point rather than a company-specific catalyst and does not ensure shares will reach that level. Article: LegalZoom consensus target price
- Negative Sentiment: Shares reportedly dropped 20.3% after the Q3 release, despite the revenue beat. One estimate comparison said EPS of $0.19 missed Zacks’ $0.21 consensus, highlighting that results fell short of some expectations. Article: Q3 sales top estimates but stock drops
- Negative Sentiment: Bank of America downgraded LZ from “buy” to “underperform,” a more cautious analyst view that may weigh on investor sentiment. Bank of America ratings
- Negative Sentiment: Management indicated search-related pressure and targeted investment, while projecting $180 million–$185 million in adjusted EBITDA for FY2026. The pressure and spending may concern investors about near-term growth and profitability. Article: LegalZoom FY2026 EBITDA outlook
Hedge Funds Weigh In On LegalZoom.com
Several institutional investors and hedge funds have recently added to or reduced their stakes in LZ. Bank of America Corp DE raised its stake in shares of LegalZoom.com by 187.4% during the first quarter. Bank of America Corp DE now owns 2,509,891 shares of the company’s stock valued at $14,231,000 after acquiring an additional 1,636,487 shares during the last quarter. Principal Financial Group Inc. grew its stake in shares of LegalZoom.com by 579.1% in the first quarter. Principal Financial Group Inc. now owns 1,010,914 shares of the company’s stock worth $5,732,000 after purchasing an additional 862,045 shares during the last quarter. Empowered Funds LLC bought a new stake in shares of LegalZoom.com in the first quarter worth $2,918,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in LegalZoom.com in the first quarter valued at $1,923,000. Finally, SEB Asset Management AB acquired a new stake in LegalZoom.com in the first quarter valued at $1,881,000. 81.99% of the stock is currently owned by institutional investors and hedge funds.
LegalZoom.com Price Performance
The firm has a market capitalization of $1.01 billion, a price-to-earnings ratio of 65.20, a P/E/G ratio of 1.26 and a beta of 1.16. The stock has a fifty day moving average of $6.16 and a two-hundred day moving average of $6.53.
LegalZoom.com (NASDAQ:LZ – Get Free Report) last announced its earnings results on Wednesday, November 4th. The company reported $0.19 EPS for the quarter, hitting the consensus estimate of $0.19. The firm had revenue of $195.15 million for the quarter, compared to the consensus estimate of $193.83 million. LegalZoom.com had a return on equity of 15.83% and a net margin of 2.13%. During the same period in the previous year, the business earned $0.17 EPS. The business’s quarterly revenue was up 2.6% compared to the same quarter last year. On average, research analysts forecast that LegalZoom.com, Inc. will post 0.32 EPS for the current year.
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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