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

LegalZoom.com, Inc. (NASDAQ:LZ)’s share price reached 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 changing hands. The stock had previously closed at $7.05.

LZ has been the subject of several other reports. Morgan Stanley lifted their target price on LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a research report on Thursday, November 13th. Wall Street Zen lowered shares of LegalZoom.com from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 1st. Citigroup decreased their price target on shares of LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating for the company in a research report on Friday, November 21st. Weiss Ratings restated a “hold (c)” rating on shares of LegalZoom.com in a research note on Monday, December 29th. Finally, Zacks Research cut LegalZoom.com from a “hold” rating to a “strong sell” rating in a research note on Monday, January 19th. Three research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, LegalZoom.com currently has an average rating of “Hold” and an average price target of $10.42.

Insider Transactions at LegalZoom.com

In other news, CFO Noel Bertram Watson sold 15,000 shares of the firm’s 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 transaction, the chief financial officer directly owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. This trade represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 5.90% of the stock is owned by corporate insiders.

Key LegalZoom.com News

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

Institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC acquired a new stake in shares of LegalZoom.com during the fourth quarter worth about $185,000. Amundi purchased a new stake in LegalZoom.com during the 1st quarter valued at 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 acquiring an additional 2,161 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of LegalZoom.com by 9.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,313,429 shares of the company’s stock valued at $11,309,000 after purchasing an additional 113,769 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of 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 purchasing an additional 4,607 shares during the last quarter. 81.99% of the stock is owned by hedge funds and other institutional investors.

LegalZoom.com Stock Down 7.0%

The stock has a fifty day moving average price of $8.99 and a 200-day moving average price of $9.76. The firm has a market cap of $1.16 billion, a price-to-earnings ratio of 82.01, a price-to-earnings-growth ratio of 1.20 and a beta of 1.22.

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 analysts’ consensus estimates of $0.18 by ($0.01). LegalZoom.com had a return on equity of 6.17% and a net margin of 2.04%.The firm had revenue of $190.27 million for the quarter, compared to analyst estimates of $184.85 million. During the same quarter last year, the firm earned $0.19 earnings per share. The company’s revenue was up 17.7% compared to the same quarter last year. As a group, research analysts expect that LegalZoom.com, Inc. will post 0.25 earnings per share for the current year.

LegalZoom.com announced that its board has authorized a share buyback plan on Thursday, February 19th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 8.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its shares are 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.