JPMorgan Chase & Co. Reaffirms “Neutral” Rating for LegalZoom.com (NASDAQ:LZ)

LegalZoom.com (NASDAQ:LZ)‘s stock had its “neutral” rating restated by investment analysts at JPMorgan Chase & Co. in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $7.00 target price on the stock, down from their previous target price of $8.00. JPMorgan Chase & Co.‘s price target would indicate a potential downside of 13.58% from the stock’s current price.

LZ has been the topic of several other research reports. UBS Group dropped their price target on shares of LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, May 7th. Weiss Ratings reiterated a “sell (d+)” rating on shares of LegalZoom.com in a research report on Thursday, July 2nd. Wall Street Zen raised LegalZoom.com from a “hold” rating to a “buy” rating in a report on Tuesday, July 28th. Finally, Citigroup lowered their target price on LegalZoom.com from $8.50 to $7.50 and set a “neutral” rating on the stock in a research report on Friday, May 22nd. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $8.08.

LegalZoom.com Stock Performance

Shares of LZ opened at $8.10 on Thursday. LegalZoom.com has a 1 year low of $5.22 and a 1 year high of $12.40. The company has a market cap of $1.39 billion, a price-to-earnings ratio of 135.02, a price-to-earnings-growth ratio of 1.40 and a beta of 1.28. The firm has a fifty day moving average of $6.76 and a 200-day moving average of $6.75.

LegalZoom.com (NASDAQ:LZ) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.15 by $0.01. The business had revenue of $205.29 million for the quarter, compared to analysts’ expectations of $205.83 million. LegalZoom.com had a net margin of 1.46% and a return on equity of 11.53%. The company’s revenue for the quarter was up 6.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.15 EPS. Analysts predict that LegalZoom.com will post 0.34 EPS for the current year.

Insider Activity at LegalZoom.com

In related news, CFO Noel Bertram Watson sold 15,000 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $6.45, for a total value of $96,750.00. Following the completion of the transaction, the chief financial officer owned 2,041,847 shares in the company, valued at $13,169,913.15. This represents a 0.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 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, insider Nicole Miller sold 19,199 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $6.58, for a total transaction of $126,329.42. Following the transaction, the insider directly owned 1,119,222 shares in the company, valued at approximately $7,364,480.76. The trade was a 1.69% decrease in their position. The SEC filing for this sale provides additional information. 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. 7.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Pacer Advisors Inc. lifted its position in LegalZoom.com by 53.6% in the first quarter. Pacer Advisors Inc. now owns 926,425 shares of the company’s stock worth $5,253,000 after purchasing an additional 323,201 shares during the period. Bank of America Corp DE increased its position in shares of LegalZoom.com by 187.4% during the 1st quarter. Bank of America Corp DE now owns 2,509,891 shares of the company’s stock valued at $14,231,000 after purchasing an additional 1,636,487 shares during the period. Arkadios Wealth Advisors increased its position in shares of 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. Amundi raised its stake in shares of LegalZoom.com by 83.2% in the 1st quarter. Amundi now owns 101,925 shares of the company’s stock worth $578,000 after buying an additional 46,285 shares in the last quarter. Finally, Royal Bank of Canada raised its stake in shares of LegalZoom.com by 1,656.5% in the 1st quarter. Royal Bank of Canada now owns 188,505 shares of the company’s stock worth $1,069,000 after buying an additional 177,773 shares in the last quarter. Institutional investors and hedge funds own 81.99% of the company’s stock.

Key Stories Impacting LegalZoom.com

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

• Positive Sentiment: LegalZoom reported second-quarter adjusted earnings of $0.16 per share, above the $0.15 consensus estimate. Revenue rose 6.6% year over year to $205.3 million, while subscription revenue increased 11% to $133.4 million, marking the fifth consecutive quarter of double-digit subscription growth. LegalZoom Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability and cash generation improved: adjusted EBITDA was $45.9 million, ahead of the high end of guidance, with a 22% margin. LegalZoom generated $33.7 million in free cash flow, ended the quarter debt-free with $167.2 million in cash, and repurchased $45.5 million of stock. LegalZoom Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: Management said it is diversifying customer-acquisition channels and expanding human-in-the-loop services as customers increasingly discover products through AI-powered search rather than traditional Google search. The company also highlighted its LegalZoom services integration with Microsoft 365 Copilot as a potential distribution opportunity. LegalZoom Q2 2026 Earnings Call Transcript
• Negative Sentiment: LegalZoom lowered its full-year 2026 revenue forecast to $795 million-$805 million, below the roughly $822 million analyst consensus. The company also issued third-quarter revenue guidance of $192 million-$196 million versus expectations of approximately $204.4 million. LegalZoom 2026 Revenue Outlook
• Negative Sentiment: The weaker outlook overshadowed the quarterly EPS beat and raised concerns about near-term customer acquisition and growth. Those concerns are particularly important given LZ’s elevated valuation, including a reported P/E ratio above 135.

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.