LegalZoom.com (NASDAQ:LZ) to Repurchase $100.00 million in Shares

LegalZoom.com (NASDAQ:LZ) announced that its Board of Directors has initiated a stock buyback plan on Thursday, February 19th, RTT News reports. The company plans to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 8.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

LegalZoom.com Price Performance

Shares of LZ opened at $6.56 on Friday. The company has a market capitalization of $1.16 billion, a P/E ratio of 82.01, a PEG ratio of 1.20 and a beta of 1.22. LegalZoom.com has a one year low of $6.29 and a one year high of $12.40. The business’s 50 day simple moving average is $8.99 and its 200-day simple moving average is $9.76.

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 business had revenue of $190.27 million for 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 6.17%. The company’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the business earned $0.19 earnings per share. On average, sell-side analysts anticipate that LegalZoom.com will post 0.25 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

LZ has been the topic of several recent research reports. Wall Street Zen lowered shares of LegalZoom.com from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 1st. UBS Group cut their price target on shares of LegalZoom.com from $12.00 to $8.00 and set a “neutral” rating for the company in a research note on Friday. Citigroup lowered their price objective on LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating on the stock in a research note on Friday, November 21st. Barclays increased their target price on LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Thursday, November 6th. Finally, Morgan Stanley boosted their price target on LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a research note on Thursday, November 13th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, LegalZoom.com presently has a consensus rating of “Hold” and an average price target of $10.42.

Insider Activity

In related news, CFO Noel Bertram Watson sold 15,000 shares of LegalZoom.com 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 completion of the transaction, the chief financial officer directly owned 1,480,860 shares of the company’s stock, valued at $10,306,785.60. The trade was a 1.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 5.90% of the stock is owned by corporate insiders.

More LegalZoom.com News

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

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.