LegalZoom.com (NASDAQ:LZ) Reaches New 52-Week Low After Analyst Downgrade

Shares of LegalZoom.com, Inc. (NASDAQ:LZ) hit 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 traded. The stock had previously closed at $7.05.

A number of other research analysts have also recently commented on LZ. Wall Street Zen cut shares of LegalZoom.com from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 1st. William Blair raised shares of LegalZoom.com from a “market perform” rating to an “outperform” rating in a research note on Thursday, November 6th. Weiss Ratings restated a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Barclays upped their price target on shares of LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Thursday, November 6th. Finally, Zacks Research downgraded LegalZoom.com from a “hold” rating to a “strong sell” rating in a report on Monday, January 19th. Three investment 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. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $10.42.

Insider Transactions at LegalZoom.com

In other LegalZoom.com news, CFO Noel Bertram Watson sold 15,000 shares of the company’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $6.96, for a total value of $104,400.00. Following the sale, the chief financial officer owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. The trade was a 1.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 5.90% of the stock is currently owned by corporate insiders.

Key Headlines Impacting LegalZoom.com

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 Trading of LegalZoom.com

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LZ. Exchange Traded Concepts LLC bought a new position in LegalZoom.com during the 3rd quarter worth approximately $34,000. Parkside Financial Bank & Trust acquired a new stake in shares of LegalZoom.com during the third quarter worth $40,000. Clearstead Advisors LLC raised its stake in LegalZoom.com by 58.5% during the third 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 last quarter. Osaic Holdings Inc. raised its stake in LegalZoom.com by 477.3% during the second 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 last quarter. Finally, EverSource Wealth Advisors LLC lifted 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 buying an additional 4,140 shares during the period. Institutional investors and hedge funds own 81.99% of the company’s stock.

LegalZoom.com Stock Performance

The stock has a fifty day simple moving average of $8.99 and a two-hundred day simple moving average of $9.77. The stock has a market capitalization of $1.16 billion, a price-to-earnings ratio of 82.01, a P/E/G ratio of 1.12 and a beta of 1.22.

LegalZoom.com (NASDAQ:LZ) last announced its earnings results on Thursday, February 19th. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.01). LegalZoom.com had a net margin of 2.04% and a return on equity of 6.17%. The business had revenue of $190.27 million for the quarter, compared to the consensus estimate of $184.85 million. During the same quarter in the previous year, the company earned $0.19 EPS. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. Research analysts forecast that LegalZoom.com, Inc. will post 0.25 earnings per share for the current year.

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

LegalZoom.com Company Profile

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.