LegalZoom.com, Inc. (NASDAQ:LZ – Get Free Report) shares passed below its 200-day moving average during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $7.00 to $6.00. The stock has a 200-day moving average of $6.52 and traded as low as $5.10. JPMorgan Chase & Co. currently has a neutral rating on the stock. LegalZoom.com shares last traded at $5.95, with a volume of 5,335,565 shares changing hands.
A number of other analysts also recently issued reports on LZ. William Blair downgraded LegalZoom.com from an “outperform” rating to a “market perform” rating in a research report on Thursday, August 6th. Wall Street Zen upgraded LegalZoom.com from a “hold” rating to a “buy” rating in a research report on Saturday, September 26th. Bank of America downgraded shares of LegalZoom.com from a “buy” rating to an “underperform” rating in a report on Thursday. Finally, Weiss Ratings downgraded shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 29th. Five analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, LegalZoom.com has an average rating of “Reduce” and a consensus target price of $7.10.
Read Our Latest Stock Analysis on LegalZoom.com
Insider Buying and Selling
In other LegalZoom.com news, insider Nicole Miller sold 33,479 shares of LegalZoom.com stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $5.51, for a total transaction of $184,469.29. Following the transaction, the insider directly owned 943,453 shares of the company’s stock, valued at approximately $5,198,426.03. This trade represents a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 LegalZoom.com stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $5.83, for a total transaction of $487,557.07. Following the transaction, the chief financial officer directly owned 1,407,801 shares in the company, valued at $8,207,479.83. This trade represents a 5.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 577,475 shares of company stock valued at $3,375,197 in the last 90 days. 7.40% of the stock is currently owned by corporate insiders.
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 $193.83 million consensus estimate and up 2.6% year over year. EPS of $0.19 matched the $0.19 consensus cited by MarketBeat, though it fell short of the $0.21 Zacks estimate. MarketBeat earnings report
- Neutral Sentiment: LegalZoom projected $180 million–$185 million in adjusted EBITDA for fiscal 2026; reports also cited pressure from search and targeted investments, which may affect the outlook. Seeking Alpha outlook report
- Negative Sentiment: Business formation volume fell 13% year over year to 110,000, pointing to softness in a key part of the business. Human-in-the-loop subscriptions accounted for 49% of third-quarter revenue. The Motley Fool analysis
- Negative Sentiment: Bank of America cut its rating from “buy” to “underperform.” JPMorgan also lowered its price target from $7 to $6 and retained a “neutral” rating, signaling limited expected upside at the cited price. Bank of America rating update JPMorgan rating update
Institutional Investors Weigh In On LegalZoom.com
A number of institutional investors have recently made changes to their positions in LZ. Allworth Financial LP grew its holdings in shares of LegalZoom.com by 255.1% during the 2nd quarter. Allworth Financial LP now owns 5,014 shares of the company’s stock valued at $31,000 after purchasing an additional 3,602 shares during the last quarter. PNC Financial Services Group Inc. lifted its stake in LegalZoom.com by 11,415.2% in the first quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock worth $43,000 after purchasing an additional 7,534 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in LegalZoom.com in the second quarter worth $47,000. Cetera Investment Advisers bought a new stake in LegalZoom.com in the first quarter worth $58,000. Finally, Headlands Technologies LLC purchased a new stake in LegalZoom.com during the second quarter valued at about $67,000. Hedge funds and other institutional investors own 81.99% of the company’s stock.
LegalZoom.com Stock Down 13.8%
The firm’s 50-day simple moving average is $6.16 and its 200-day simple moving average is $6.52. The firm has a market capitalization of $1.02 billion, a PE ratio of 49.59, a price-to-earnings-growth ratio of 1.30 and a beta of 1.16.
LegalZoom.com (NASDAQ:LZ – Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $0.19 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.19. The firm had revenue of $195.15 million for the quarter, compared to analysts’ expectations of $193.83 million. LegalZoom.com had a return on equity of 23.09% and a net margin of 2.56%. The company’s revenue for the quarter was up 2.6% compared to the same quarter last year. During the same period last year, the firm earned $0.17 earnings per share. On average, equities research analysts forecast that LegalZoom.com, Inc. will post 0.32 earnings per share for the current year.
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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