JPMorgan Chase & Co. Has Lowered Expectations for LegalZoom.com (NASDAQ:LZ) Stock Price

LegalZoom.com (NASDAQ:LZ) had its price target cut by JPMorgan Chase & Co. from $7.00 to $6.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price target indicates a potential upside of 14.50% from the company’s previous close.

LZ has been the topic of several other reports. Weiss Ratings cut shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, October 29th. Bank of America cut LegalZoom.com from a “buy” rating to an “underperform” rating in a research note on Thursday. William Blair cut LegalZoom.com from an “outperform” rating to a “market perform” rating in a report on Thursday, August 6th. Finally, Wall Street Zen upgraded shares of LegalZoom.com from a “hold” rating to a “buy” rating in a research report on Saturday, September 26th. Five analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and an average target price of $7.10.

LegalZoom.com Trading Down 11.9%

Shares of LegalZoom.com stock traded down $0.71 during mid-day trading on Thursday, reaching $5.24. 3,716,687 shares of the stock were exchanged, compared to its average volume of 2,448,845. The company has a market cap of $897.40 million, a price-to-earnings ratio of 43.67, a price-to-earnings-growth ratio of 1.30 and a beta of 1.16. LegalZoom.com has a fifty-two week low of $5.10 and a fifty-two week high of $10.88. The firm has a 50-day simple moving average of $6.15 and a 200 day simple moving average of $6.50.

LegalZoom.com (NASDAQ:LZ) last released its earnings results on Wednesday, November 4th. The company reported $0.19 EPS for the quarter, meeting the consensus estimate of $0.19. LegalZoom.com had a return on equity of 15.83% and a net margin of 2.13%. The company had revenue of $195.15 million during the quarter, compared to analysts’ expectations of $193.83 million. During the same period last year, the firm earned $0.17 EPS. The business’s revenue for the quarter was up 2.6% on a year-over-year basis. On average, research analysts predict that LegalZoom.com will post 0.32 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Noel Watson sold 83,629 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $5.83, for a total transaction of $487,557.07. Following the sale, the chief financial officer owned 1,407,801 shares in the company, valued at approximately $8,207,479.83. This trade represents a 5.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, 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 completion of the transaction, the insider directly owned 943,453 shares in the company, valued at $5,198,426.03. This trade represents a 3.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders have sold 577,475 shares of company stock valued at $3,375,197. 7.40% of the stock is currently owned by insiders.

Institutional Trading of LegalZoom.com

Several institutional investors and hedge funds have recently modified their holdings of LZ. Squarepoint Ops LLC raised its stake in LegalZoom.com by 289.3% during the second quarter. Squarepoint Ops LLC now owns 269,974 shares of the company’s stock worth $1,655,000 after acquiring an additional 200,618 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of LegalZoom.com by 187.4% during the 1st quarter. Bank of America Corp DE now owns 2,509,891 shares of the company’s stock valued at $14,231,000 after purchasing an additional 1,636,487 shares during the last quarter. Pacer Advisors Inc. increased its position in LegalZoom.com by 53.6% during the 1st quarter. Pacer Advisors Inc. now owns 926,425 shares of the company’s stock worth $5,253,000 after purchasing an additional 323,201 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund bought a new position in LegalZoom.com in the 1st quarter valued at approximately $1,923,000. Finally, Hawk Ridge Capital Management LP lifted its stake in LegalZoom.com by 48.7% in the 1st quarter. Hawk Ridge Capital Management LP now owns 735,929 shares of the company’s stock valued at $4,173,000 after purchasing an additional 241,100 shares during the last quarter. 81.99% of the stock is currently owned by institutional investors.

LegalZoom.com News Summary

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

• Positive Sentiment: Q3 revenue of $195.15 million topped the $193.83 million estimate, while earnings of $0.19 per share matched the reported consensus and rose from $0.17 a year earlier. Q3 earnings results
• Neutral Sentiment: LegalZoom projected $180 million–$185 million in adjusted EBITDA for 2026, while noting pressure from search and targeted investments. 2026 EBITDA outlook
• Negative Sentiment: Business-formation volume fell 13% year over year to 110,000, a sign of weaker demand; human-in-the-loop subscriptions accounted for 49% of Q3 revenue. Long-term investor takeaways
• Negative Sentiment: Bank of America cut its rating from Buy to Underperform. JPMorgan lowered its price target from $7 to $6 and kept a Neutral rating, adding to concerns about the outlook. Stock crosses below 200-day moving average after downgrade

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.