LegalZoom.com (NASDAQ:LZ) Releases Earnings Results, Misses Estimates By $0.03 EPS

LegalZoom.com (NASDAQ:LZ) announced its quarterly earnings results on Wednesday. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.03), FiscalAI reports. LegalZoom.com had a return on equity of 9.91% and a net margin of 3.05%.The company had revenue of $190.16 million for the quarter, compared to analyst estimates of $183.27 million. During the same quarter in the prior year, the business earned $0.17 earnings per share. LegalZoom.com’s revenue was up 12.8% compared to the same quarter last year. LegalZoom.com updated its FY 2025 guidance to EPS and its Q4 2025 guidance to EPS.

LegalZoom.com Stock Down 7.6%

NASDAQ LZ traded down $0.83 during trading hours on Friday, hitting $10.10. 3,206,509 shares of the stock were exchanged, compared to its average volume of 2,230,057. The company has a market cap of $1.79 billion, a price-to-earnings ratio of 84.17, a price-to-earnings-growth ratio of 3.35 and a beta of 1.23. LegalZoom.com has a 12-month low of $6.47 and a 12-month high of $12.40. The stock has a 50-day moving average of $10.37 and a 200 day moving average of $9.54.

Insiders Place Their Bets

In other news, insider Nicole Miller sold 25,154 shares of the firm’s stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $10.82, for a total value of $272,166.28. Following the completion of the sale, the insider directly owned 960,032 shares of the company’s stock, valued at $10,387,546.24. This trade represents a 2.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John Francis Murphy sold 24,250 shares of the company’s stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $10.57, for a total value of $256,322.50. Following the transaction, the director directly owned 69,953 shares in the company, valued at $739,403.21. This represents a 25.74% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 109,859 shares of company stock worth $1,193,100. Company insiders own 5.90% of the company’s stock.

Institutional Trading of LegalZoom.com

Several institutional investors and hedge funds have recently modified their holdings of LZ. Qube Research & Technologies Ltd increased its stake in shares of LegalZoom.com by 180.5% during the 2nd quarter. Qube Research & Technologies Ltd now owns 1,797,252 shares of the company’s stock worth $16,014,000 after purchasing an additional 1,156,462 shares in the last quarter. AQR Capital Management LLC grew its holdings in LegalZoom.com by 77.9% during the 2nd quarter. AQR Capital Management LLC now owns 1,671,966 shares of the company’s stock valued at $14,897,000 after buying an additional 731,967 shares during the last quarter. Goldman Sachs Group Inc. increased its position in LegalZoom.com by 9.5% during the first quarter. Goldman Sachs Group Inc. now owns 1,313,429 shares of the company’s stock worth $11,309,000 after buying an additional 113,769 shares in the last quarter. Lazard Asset Management LLC increased its position in LegalZoom.com by 507.3% during the second quarter. Lazard Asset Management LLC now owns 1,104,734 shares of the company’s stock worth $9,842,000 after buying an additional 922,829 shares in the last quarter. Finally, Man Group plc raised its holdings in shares of LegalZoom.com by 75.1% in the second quarter. Man Group plc now owns 1,026,520 shares of the company’s stock worth $9,146,000 after acquiring an additional 440,201 shares during the last quarter. Hedge funds and other institutional investors own 81.99% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on LZ shares. Barclays raised their price objective on LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Thursday. William Blair raised LegalZoom.com from a “market perform” rating to an “outperform” rating in a research report on Thursday. Weiss Ratings reiterated a “hold (c-)” rating on shares of LegalZoom.com in a research note on Wednesday, October 8th. Bank of America upgraded shares of LegalZoom.com from an “underperform” rating to a “buy” rating and raised their target price for the stock from $8.00 to $12.00 in a research report on Friday, August 8th. Finally, JPMorgan Chase & Co. lifted their target price on shares of LegalZoom.com from $12.00 to $14.00 and gave the company an “overweight” rating in a report on Monday, September 8th. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, LegalZoom.com has a consensus rating of “Hold” and a consensus target price of $11.17.

About LegalZoom.com

LegalZoom.com, Inc, together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations.