LegalZoom.com (NASDAQ:LZ) Stock Bumped Down to Hold by Wall Street Zen

08 Nov 2026, 05:49 by Jessica Moore · The Cerbat Gem

Wall Street Zen cut shares of LegalZoom.com (NASDAQ:LZ – Free Report) from a buy rating to a hold rating in a research report report published on Saturday morning,Wall Street Zen reports.

Other equities research analysts have also issued reports about the company. William Blair lowered LegalZoom.com from an “outperform” rating to a “market perform” rating in a research report on Thursday, August 6th. Bank of America downgraded shares of LegalZoom.com from a “buy” rating to an “underperform” rating in a report on Thursday. JPMorgan Chase & Co. decreased their price objective on shares of LegalZoom.com from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Thursday. Finally, Weiss Ratings downgraded shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 29th. Five equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, LegalZoom.com currently has an average rating of “Reduce” and an average price target of $7.10.

Check Out Our Latest Stock Report on LegalZoom.com

LegalZoom.com Stock Down 11.9%

LZ stock opened at $5.24 on Friday. The firm has a market cap of $865.44 million, a PE ratio of 43.67, a P/E/G ratio of 0.98 and a beta of 1.16. The business has a 50 day moving average of $6.15 and a 200-day moving average of $6.50. LegalZoom.com has a 12-month low of $5.10 and a 12-month high of $10.88.

LegalZoom.com (NASDAQ:LZ – Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The company reported $0.19 EPS for the quarter, meeting analysts’ consensus estimates of $0.19. The company had revenue of $195.15 million during the quarter, compared to the consensus estimate of $193.83 million. LegalZoom.com had a return on equity of 23.63% and a net margin of 2.56%. LegalZoom.com’s revenue was up 2.6% on a year-over-year basis. During the same period last year, the business posted $0.17 earnings per share. On average, research analysts expect that LegalZoom.com will post 0.32 earnings per share for the current year.

Insider Buying and Selling at LegalZoom.com

In other LegalZoom.com news, insider Nicole Miller sold 43,996 shares of the business’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.51, for a total value of $242,417.96. Following the sale, the insider directly owned 976,932 shares in the company, valued at $5,382,895.32. The trade was a 4.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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. Also, CFO Noel Watson sold 416,371 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $5.91, for a total value of $2,460,752.61. Following the completion of the sale, the chief financial officer owned 1,491,430 shares in the company, valued at approximately $8,814,351.30. The trade was a 21.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 577,475 shares of company stock valued at $3,375,197. 7.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On LegalZoom.com

Several large investors have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC lifted its stake in LegalZoom.com by 11.2% in the first quarter. Allspring Global Investments Holdings LLC now owns 27,012 shares of the company’s stock worth $154,000 after acquiring an additional 2,716 shares during the period. Allworth Financial LP boosted its holdings in LegalZoom.com by 255.1% in the second quarter. Allworth Financial LP now owns 5,014 shares of the company’s stock valued at $31,000 after acquiring an additional 3,602 shares in the last quarter. Arkadios Wealth Advisors increased its position in LegalZoom.com by 5.6% during the 1st quarter. Arkadios Wealth Advisors now owns 74,819 shares of the company’s stock valued at $424,000 after purchasing an additional 3,953 shares during the period. PNC Financial Services Group Inc. increased its position in LegalZoom.com by 11,415.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock valued at $43,000 after purchasing an additional 7,534 shares during the period. Finally, Integrated Wealth Concepts LLC purchased a new position in LegalZoom.com during the 2nd quarter valued at $47,000. Hedge funds and other institutional investors own 81.99% of the company’s stock.

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

(Get Free Report)

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.