LegalZoom.com (NASDAQ:LZ) Trading Down 9.1% – What’s Next?

14 Jan 2026, 17:56 by Scott Moore · The Cerbat Gem

LegalZoom.com, Inc. (NASDAQ:LZ – Get Free Report) shares dropped 9.1% during trading on Wednesday . The company traded as low as $9.37 and last traded at $9.1650. Approximately 1,085,859 shares traded hands during trading, a decline of 34% from the average daily volume of 1,654,258 shares. The stock had previously closed at $10.08.

Analysts Set New Price Targets

LZ has been the subject of a number of research analyst reports. William Blair upgraded LegalZoom.com from a “market perform” rating to an “outperform” rating in a research report on Thursday, November 6th. Morgan Stanley increased their price objective on shares of LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a research note on Thursday, November 13th. Citigroup cut their target price 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 reiterated a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Finally, Barclays lifted their price objective on LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a research report on Thursday, November 6th. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $11.50.

View Our Latest Stock Analysis on LZ

LegalZoom.com Trading Down 8.1%

The company has a market capitalization of $1.64 billion, a price-to-earnings ratio of 77.17, a PEG ratio of 1.71 and a beta of 1.22. The company’s 50 day simple moving average is $9.85 and its 200-day simple moving average is $9.95.

LegalZoom.com (NASDAQ:LZ – Get Free Report) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.03). The firm had revenue of $190.16 million during the quarter, compared to analyst estimates of $183.27 million. LegalZoom.com had a net margin of 3.05% and a return on equity of 9.91%. The business’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.17 EPS. Sell-side analysts anticipate that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

Insiders Place Their Bets

In other LegalZoom.com news, CFO Noel Bertram Watson sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $9.56, for a total value of $143,400.00. Following the sale, the chief financial officer directly owned 1,551,582 shares of the company’s stock, valued at approximately $14,833,123.92. This trade represents a 0.96% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Nicole Miller sold 23,506 shares of LegalZoom.com stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $9.63, for a total value of $226,362.78. Following the completion of the sale, the insider owned 868,627 shares of the company’s stock, valued at $8,364,878.01. This trade represents a 2.63% decrease in their position. The SEC filing for this sale provides additional information. 5.90% of the stock is owned by insiders.

Institutional Investors Weigh In On LegalZoom.com

Hedge funds have recently modified their holdings of the stock. Exchange Traded Concepts LLC purchased a new position in LegalZoom.com during the third quarter worth approximately $34,000. Parkside Financial Bank & Trust acquired a new stake in shares of LegalZoom.com during the 3rd quarter worth $40,000. Clearstead Advisors LLC raised its position in shares of LegalZoom.com by 58.5% in the 3rd quarter. Clearstead Advisors LLC now owns 3,906 shares of the company’s stock worth $41,000 after buying an additional 1,441 shares during the period. Osaic Holdings Inc. raised its position in shares of LegalZoom.com by 477.3% in the 2nd quarter. Osaic Holdings Inc. now owns 4,555 shares of the company’s stock worth $41,000 after buying an additional 3,766 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its holdings in LegalZoom.com by 976.4% in the second quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company’s stock valued at $41,000 after acquiring an additional 4,140 shares during the last quarter. 81.99% of the stock is owned by institutional investors and hedge funds.

LegalZoom.com Company Profile

(Get Free Report)

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.