LegalZoom.com (NASDAQ:LZ) Reaches New 12-Month Low After Analyst Downgrade

Shares of LegalZoom.com, Inc. (NASDAQ:LZ) hit a new 52-week low on Saturday after UBS Group lowered their price target on the stock from $12.00 to $8.00. UBS Group currently has a neutral rating on the stock. LegalZoom.com traded as low as $6.29 and last traded at $6.56, with a volume of 7231338 shares trading hands. The stock had previously closed at $7.05.

Several other equities research analysts also recently weighed in on LZ. William Blair raised LegalZoom.com from a “market perform” rating to an “outperform” rating in a research report on Thursday, November 6th. Zacks Research downgraded LegalZoom.com from a “hold” rating to a “strong sell” rating in a research note on Monday, January 19th. Morgan Stanley lifted their price target on LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a research report on Thursday, November 13th. Citigroup decreased their price target on LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating for the company in a report on Friday, November 21st. Finally, JPMorgan Chase & Co. dropped their price objective on shares of LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating on the stock in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, LegalZoom.com presently has a consensus rating of “Hold” and an average price target of $10.42.

Insider Buying and Selling

In other LegalZoom.com news, CFO Noel Bertram Watson sold 15,000 shares of the company’s stock in a transaction on Wednesday, February 18th. The shares were 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 directly owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. This represents a 1.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 5.90% of the company’s stock.

LegalZoom.com News Summary

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

• Positive Sentiment: Q4 & full‑year results showed revenue and cash‑flow strength (Q4 revenue $190.3M vs. $184.9M est.; full‑year revenue +11%; record operating cash flow and free cash flow; $203.1M cash, no debt). GlobeNewswire: Press Release
• Positive Sentiment: Board authorized a $100M share repurchase (represents ~8.1% of shares), a tangible capital‑return action that typically supports the share price. RTT News: Buyback
• Neutral Sentiment: Results were mixed: EPS missed by $0.01 (reported $0.17 vs. $0.18 consensus) even as revenue grew ~17.7% YoY; margins and earnings leverage remain watch points. MarketBeat: Earnings
• Neutral Sentiment: Guidance: FY‑2026 revenue $805M–$825M (around or slightly above consensus) and Q1 revenue guide in line — supports top‑line continuation but investors will watch execution. GlobeNewswire: Guidance
• Negative Sentiment: Analyst downgrades and PT cuts pressured sentiment: UBS cut its PT from $12 to $8 and moved to Neutral; other banks (JPMorgan coverage noted) have similarly become more cautious. Analyst tone likely amplified selling. Benzinga: UBS PT Cut AmericanBankingNews: JPMorgan Note
• Negative Sentiment: Insider selling: CFO Noel Watson sold 15,000 shares (~$104K) last week; while small vs. his holdings, exec sales can create near‑term headline pressure. SEC Form 4

Institutional Investors Weigh In On LegalZoom.com

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Arrowstreet Capital Limited Partnership boosted its stake in LegalZoom.com by 20.8% during the third quarter. Arrowstreet Capital Limited Partnership now owns 4,408,170 shares of the company’s stock worth $45,757,000 after buying an additional 758,367 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of LegalZoom.com by 165.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,730,487 shares of the company’s stock valued at $37,044,000 after acquiring an additional 2,324,481 shares during the last quarter. Boston Partners grew its holdings in shares of LegalZoom.com by 81.0% in the fourth quarter. Boston Partners now owns 3,623,111 shares of the company’s stock valued at $36,054,000 after purchasing an additional 1,621,125 shares during the period. Franklin Resources Inc. increased its position in LegalZoom.com by 2.8% during the third quarter. Franklin Resources Inc. now owns 3,327,296 shares of the company’s stock worth $34,537,000 after purchasing an additional 90,599 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in LegalZoom.com by 12.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,021,764 shares of the company’s stock worth $30,007,000 after purchasing an additional 340,780 shares during the last quarter. Institutional investors and hedge funds own 81.99% of the company’s stock.

LegalZoom.com Price Performance

The company has a market capitalization of $1.16 billion, a PE ratio of 82.01, a P/E/G ratio of 1.20 and a beta of 1.22. The business’s 50 day simple moving average is $8.99 and its 200 day simple moving average is $9.76.

LegalZoom.com (NASDAQ:LZ) last issued its quarterly earnings data on Thursday, February 19th. The company reported $0.17 earnings per share (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 return on equity of 6.17% and a net margin of 2.04%.The firm’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.19 earnings per share. As a group, analysts anticipate that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

LegalZoom.com declared that its Board of Directors has approved a stock repurchase program on Thursday, February 19th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 8.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

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.