UBS Group Issues Pessimistic Forecast for LegalZoom.com (NASDAQ:LZ) Stock Price

LegalZoom.com (NASDAQ:LZ) had its target price dropped by investment analysts at UBS Group from $12.00 to $8.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a “neutral” rating on the stock. UBS Group’s target price would indicate a potential upside of 24.71% from the company’s current price.

Other equities analysts also recently issued reports about the stock. Citigroup cut their price target on shares of LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating for the company in a report on Friday, November 21st. JPMorgan Chase & Co. dropped their price target on LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating for the company in a report on Wednesday. Morgan Stanley increased their target price on LegalZoom.com from $8.50 to $9.00 and gave the stock an “underweight” rating in a report on Thursday, November 13th. Zacks Research cut LegalZoom.com from a “hold” rating to a “strong sell” rating in a report on Monday, January 19th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Three equities 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. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $10.42.

LegalZoom.com Stock Performance

Shares of LZ stock traded down $0.64 on Friday, reaching $6.42. 4,743,050 shares of the company’s stock traded hands, compared to its average volume of 3,916,481. The business’s 50 day moving average price is $9.06 and its two-hundred day moving average price is $9.78. The company has a market capitalization of $1.14 billion, a P/E ratio of 53.56, a price-to-earnings-growth ratio of 1.19 and a beta of 1.22. LegalZoom.com has a 12-month low of $6.29 and a 12-month high of $12.40.

LegalZoom.com (NASDAQ:LZ) last issued its quarterly earnings results on Thursday, February 19th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). LegalZoom.com had a net margin of 3.05% and a return on equity of 9.91%. The business had revenue of $190.27 million during the quarter, compared to analyst estimates of $184.85 million. During the same period in the prior year, the business posted $0.19 earnings per share. The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. Research analysts predict that LegalZoom.com will post 0.25 earnings per share for the current year.

LegalZoom.com declared that its board has authorized a stock buyback program on Thursday, February 19th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to repurchase up to 8.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, CFO Noel Bertram Watson sold 15,000 shares of the stock in a transaction that occurred 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 sale, the chief financial officer owned 1,480,860 shares of the company’s stock, valued at $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 available at this link. 5.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On LegalZoom.com

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC acquired a new stake in shares of LegalZoom.com during the fourth quarter worth $185,000. Amundi bought a new stake in shares of LegalZoom.com during the first quarter worth approximately $196,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in LegalZoom.com by 3.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,980 shares of the company’s stock worth $646,000 after buying an additional 2,161 shares in the last quarter. Goldman Sachs Group Inc. boosted 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 purchasing an additional 113,769 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in LegalZoom.com by 1.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 275,978 shares of the company’s stock valued at $2,376,000 after buying an additional 4,607 shares during the last quarter. 81.99% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about LegalZoom.com

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

• Positive Sentiment: Company reported stronger-than-expected revenue, record operating and free cash flow and ended 2025 with $203.1M cash and no debt — evidence of improving fundamentals. GlobeNewswire: Press Release
• Positive Sentiment: Board approved a $100M share repurchase (≈8.1% of shares), a capital-return action that signals management thinks the stock is undervalued. RTT News: Buyback
• Positive Sentiment: Revenue guidance for FY‑2026 ($805M–$825M) and Q1 revenue guide ($200M–$203M) are roughly in line with or slightly above consensus, supporting continued top‑line growth expectations. GlobeNewswire: Press Release
• Neutral Sentiment: EPS missed by $0.01 (reported $0.17 vs. $0.18 consensus) despite the revenue beat — points to margins and cost leverage as the next key watch items. MarketBeat: Earnings
• Neutral Sentiment: Management emphasized subscription growth, an upmarket shift and human‑in‑the‑loop AI initiatives on the earnings call — investors will look to execution details in the transcript/slides. Seeking Alpha: Subscription Growth
• Negative Sentiment: JPMorgan and other analysts turned more cautious (price‑target cuts), reducing near‑term upside expectations and likely contributing to selling pressure. AmericanBankingNews: JPMorgan Pessimistic Forecast
• Negative Sentiment: Insider sale: CFO Noel Watson sold 15,000 shares at about $6.96 — small vs. his total holdings but a visible signal that can accentuate short‑term downward moves. SEC Form 4

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.