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

LegalZoom.com (NASDAQ:LZ) declared that its Board of Directors has initiated a stock buyback program on Thursday, February 19th, RTT News reports. The company plans to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 8.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several equities research analysts have weighed in on LZ shares. 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 research note on Wednesday. Citigroup reduced their target price on LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating for the company in a research note on Friday, November 21st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Zacks Research downgraded LegalZoom.com from a “hold” rating to a “strong sell” rating in a research note on Monday, January 19th. Finally, Barclays raised their price objective on LegalZoom.com from $10.00 to $12.00 and gave the company an “equal weight” rating in a research note on Thursday, November 6th. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, LegalZoom.com has an average rating of “Hold” and an average price target of $10.90.

LegalZoom.com Stock Performance

LZ traded up $0.08 during midday trading on Thursday, reaching $7.05. 5,437,626 shares of the company were exchanged, compared to its average volume of 4,717,361. The company’s fifty day moving average price is $9.06 and its 200 day moving average price is $9.78. The company has a market cap of $1.25 billion, a price-to-earnings ratio of 58.75, a price-to-earnings-growth ratio of 1.19 and a beta of 1.22. LegalZoom.com has a one year low of $6.47 and a one year high of $12.40.

LegalZoom.com (NASDAQ:LZ) last posted its 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 the consensus estimate of $184.85 million. LegalZoom.com had a net margin of 3.05% and a return on equity of 9.91%. The firm’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.19 EPS. As a group, sell-side analysts anticipate that LegalZoom.com will post 0.25 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other LegalZoom.com news, CFO Noel Bertram Watson sold 15,000 shares of LegalZoom.com stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $6.96, for a total transaction of $104,400.00. Following 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 5.90% of the company’s stock.

Key LegalZoom.com News

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

• Positive Sentiment: Q4 and FY results showed top‑line strength and cash generation — Q4 revenue beat consensus ($190.3M vs. ~$184.9M) and full‑year revenue was $756.0M (up 11% YoY); record operating cash flow ($178.2M) and free cash flow ($147.9M). Company reports $203.1M cash and no debt, and raised its share repurchase authorization by $100M — supports buyback-driven shareholder returns. Read More.
• Positive Sentiment: 2026 revenue guidance roughly in line to slightly above Street expectations — Q1 revenue guide of $200M–$203M (vs. ~$200.8M consensus) and FY revenue guide of $805M–$825M (vs. ~$802.3M consensus). Guidance that meets or modestly exceeds estimates helps justify today’s uptick. Read More.
• Neutral Sentiment: Analyst/coverage notes and commentary are assessing whether the company’s shift to higher‑value subscription customers and recent acquisition momentum can sustain the growth trajectory — useful context but not an immediate catalyst. Read More.
• Neutral Sentiment: Reported short‑interest data in the feed appears to show zero shares and a 0.0 days‑to‑cover ratio; the item is likely a data issue and not actionable. (No substantive signal.)
• Negative Sentiment: Earnings per share slightly missed — Q4 EPS $0.17 vs. ~$0.18 consensus (and down from $0.19 a year ago). While revenue grew, the EPS miss and modest net margin (~3.1%) could worry earnings‑focused investors. Read More.
• Negative Sentiment: Insider selling: CFO Noel Bertram Watson sold 15,000 shares (about a 1.0% reduction of his stake) at an average price near $6.96 — a small sale but often viewed unfavorably by some investors. Read More.
• Negative Sentiment: Price target was cut by JPMorgan from $14 to $11 (still an overweight rating) — a lower target from a major bank can weigh on sentiment even if the view remains constructive. Read More.

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.