UBS Group Cuts LegalZoom.com (NASDAQ:LZ) Price Target to $7.00

LegalZoom.com (NASDAQ:LZ) had its target price dropped by analysts at UBS Group from $8.00 to $7.00 in a report released on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the stock. UBS Group’s price objective suggests a potential upside of 15.32% from the stock’s current price.

Several other brokerages also recently issued reports on LZ. Zacks Research raised LegalZoom.com from a “strong sell” rating to a “hold” rating in a research note on Monday, February 23rd. JPMorgan Chase & Co. decreased their price target on shares of LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating for the company in a report on Wednesday, February 18th. Barclays restated an “underweight” rating and set a $6.00 price target (down from $9.00) on shares of LegalZoom.com in a report on Wednesday, March 4th. Finally, Weiss Ratings cut shares of LegalZoom.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, April 6th. Three analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, LegalZoom.com presently has an average rating of “Hold” and an average price target of $9.25.

LegalZoom.com Stock Performance

Shares of NASDAQ:LZ traded down $0.21 during midday trading on Thursday, reaching $6.07. The company had a trading volume of 5,704,969 shares, compared to its average volume of 3,215,468. LegalZoom.com has a 1-year low of $5.28 and a 1-year high of $12.40. The firm has a market cap of $1.05 billion, a price-to-earnings ratio of 75.88, a price-to-earnings-growth ratio of 1.45 and a beta of 1.33. The company has a fifty day simple moving average of $6.26 and a two-hundred day simple moving average of $8.25.

LegalZoom.com (NASDAQ:LZ) last released its quarterly earnings results on Thursday, February 19th. The company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The company had revenue of $190.27 million during the quarter, compared to analyst estimates of $184.85 million. LegalZoom.com had a net margin of 2.04% and a return on equity of 6.35%. The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.19 EPS. Analysts expect that LegalZoom.com will post 0.27 EPS for the current year.

LegalZoom.com announced that its board has approved a stock repurchase program on Thursday, February 19th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to repurchase up to 8.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its stock is undervalued.

Insider Activity at LegalZoom.com

In other news, insider Nicole Miller sold 23,325 shares of the firm’s stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $6.63, for a total transaction of $154,644.75. Following the completion of the sale, the insider directly owned 813,033 shares of the company’s stock, valued at $5,390,408.79. This trade represents a 2.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Noel Bertram Watson sold 15,000 shares of the firm’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 directly owned 1,480,860 shares of the company’s stock, valued at $10,306,785.60. This trade represents a 1.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 5.90% of the company’s stock.

Institutional Investors Weigh In On LegalZoom.com

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP raised its stake in shares of LegalZoom.com by 3.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,112,895 shares of the company’s stock worth $17,650,000 after purchasing an additional 91,131 shares in the last quarter. SEB Asset Management AB purchased a new stake in shares of LegalZoom.com during the 1st quarter worth about $1,881,000. Allspring Global Investments Holdings LLC raised its stake in shares of LegalZoom.com by 11.2% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 27,012 shares of the company’s stock worth $154,000 after purchasing an additional 2,716 shares in the last quarter. Bastion Asset Management Inc. purchased a new stake in shares of LegalZoom.com during the 1st quarter worth about $1,093,000. Finally, Bank of New York Mellon Corp raised its stake in shares of LegalZoom.com by 59.5% during the 1st quarter. Bank of New York Mellon Corp now owns 722,649 shares of the company’s stock worth $4,097,000 after purchasing an additional 269,666 shares in the last quarter. 81.99% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting LegalZoom.com

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

• Positive Sentiment: Q1 top-line strength, cash flow and buybacks — LegalZoom reported revenue of $206.8M (up ~13% YoY), delivered $41.0M in free cash flow, adjusted EBITDA of $36.5M, ended the quarter with ~$183M cash and completed $43.5M of share repurchases, and has no debt — supportive for margins and shareholder returns. LegalZoom Reports First Quarter Financial Results
• Positive Sentiment: Product innovation could boost SMB retention and ARPU — LegalZoom unveiled an AI‑powered Virtual Mail product for small businesses, which could drive higher-value subscription adoption and improve margins over time. LegalZoom Reinvents Virtual Mail with AI
• Neutral Sentiment: Earnings materials and management commentary available — The earnings slide deck and call transcript provide detail on product mix, subscription trends and margin drivers that investors will parse for forward momentum. Q1 Results Presentation Earnings Call Transcript
• Neutral Sentiment: Valuation comparison context — Analysts have published comparative takes (e.g., vs. Fastenal) for value investors assessing LZ’s growth vs. industrial peers; useful but not determinative for near‑term price moves. LZ vs. FAST: Which Stock Is the Better Value Option?
• Negative Sentiment: EPS missed and guidance mixed — Reported EPS (~$0.12) slightly missed estimates (~$0.13), and management issued Q2 revenue guidance of $203M–$207M (versus Street ~$207.6M) and FY revenue $810M–$830M (vs. consensus ~$817.8M). The EPS miss plus a Q2 midpoint a touch below consensus likely pressured the stock. LegalZoom Q1 Earnings Lag Estimates
• Negative Sentiment: Small near-term execution risk — Despite revenue beat, the margin-neutral EPS shortfall and slightly softer Q2 guidance increase short‑term execution scrutiny (customer conversion, ARPU, and margin trends). LegalZoom: Q1 Earnings Snapshot

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.