LegalZoom.com (NASDAQ:LZ) CFO Noel Bertram Watson Sells 15,000 Shares

LegalZoom.com, Inc. (NASDAQ:LZ) CFO Noel Bertram Watson sold 15,000 shares of LegalZoom.com stock in a transaction on 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 owned 1,480,860 shares in the company, valued at $10,306,785.60. The trade was a 1.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

LegalZoom.com Stock Down 8.1%

Shares of NASDAQ LZ traded down $0.57 during mid-day trading on Friday, hitting $6.48. 3,210,243 shares of the company traded hands, compared to its average volume of 3,864,313. LegalZoom.com, Inc. has a 1 year low of $6.41 and a 1 year high of $12.40. The stock has a market capitalization of $1.15 billion, a price-to-earnings ratio of 53.71, a PEG ratio of 1.19 and a beta of 1.22. The business has a 50 day moving average of $9.06 and a two-hundred day moving average of $9.78.

LegalZoom.com (NASDAQ:LZ) last posted its quarterly earnings data on Thursday, February 19th. The company reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The firm had revenue of $190.27 million for the quarter, compared to analysts’ expectations of $184.85 million. LegalZoom.com had a net margin of 3.05% and a return on equity of 9.91%. LegalZoom.com’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.19 earnings per share. As a group, research analysts anticipate that LegalZoom.com, Inc. will post 0.25 EPS for the current year.

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

Hedge Funds Weigh In On LegalZoom.com

Several hedge funds have recently modified their holdings of LZ. Exchange Traded Concepts LLC acquired a new stake in LegalZoom.com in the third quarter valued at $34,000. Parkside Financial Bank & Trust acquired a new position in LegalZoom.com in the 3rd quarter valued at $40,000. Clearstead Advisors LLC increased its position in LegalZoom.com by 58.5% during the 3rd 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 period. Osaic Holdings Inc. lifted its holdings in shares of 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 in the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in shares of 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 acquiring an additional 4,140 shares in the last quarter. Institutional investors own 81.99% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Wall Street Zen lowered shares of LegalZoom.com from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 1st. Zacks Research lowered shares of LegalZoom.com from a “hold” rating to a “strong sell” rating in a research report on Monday, January 19th. Weiss Ratings reiterated a “hold (c)” rating on shares of LegalZoom.com in a report on Monday, December 29th. Barclays upped their price target on shares of LegalZoom.com from $10.00 to $12.00 and gave the company an “equal weight” rating in a report on Thursday, November 6th. Finally, William Blair raised LegalZoom.com from a “market perform” rating to an “outperform” rating in a research report on Thursday, November 6th. Three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, LegalZoom.com has an average rating of “Hold” and a consensus price target of $10.90.

LegalZoom.com News Roundup

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

• Positive Sentiment: Q4 and full‑year results showed revenue and cash flow strength: Q4 revenue beat consensus ($190.3M vs. $184.9M), full‑year revenue +11% and record operating cash flow and free cash flow; company reports Adjusted EBITDA exceeded outlook and ended the year with $203.1M cash and no debt. GlobeNewswire: Press Release
• Positive Sentiment: Board authorized a $100 million share repurchase (up to ~8.1% of shares), signaling management views the stock as undervalued and returning capital to shareholders. RTT News: Buyback
• Positive Sentiment: Revenue guidance for FY‑2026 ($805M–$825M) is at or slightly above consensus; Q1 revenue guide ($200M–$203M) is roughly in line — supports continued top‑line growth expectations. (See company release above.)
• Neutral Sentiment: Results were mixed: EPS missed by $0.01 (reported $0.17 vs. $0.18 consensus) even as revenue grew strongly year‑over‑year — margin/earnings leverage remains a watch item. MarketBeat: Earnings
• Neutral Sentiment: Management commentary (earnings call transcript) will be important for clarity on margin drivers, customer mix (upmarket shift) and cadence of subscription growth. Seeking Alpha: Transcript
• Neutral Sentiment: Reported short interest data appears anomalous/insignificant in the filings today and is not presenting a meaningful days‑to‑cover signal.
• Negative Sentiment: JPMorgan has reduced its price target and issued a more cautious outlook on LZ, citing concerns that temper upside expectations — that analyst tone likely pressured the shares. AmericanBankingNews: JPMorgan Pessimistic Forecast (Earlier JPMorgan note lowering PT from $14 to $11 was reported as well.) Benzinga: PT Cut
• Negative Sentiment: Insider selling: CFO Noel Watson sold 15,000 shares at about $6.96. While not large relative to his holdings, insider sales can create near‑term downward 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.