Insider Selling: LegalZoom.com (NASDAQ:LZ) CFO Sells $104,400.00 in Stock

LegalZoom.com, Inc. (NASDAQ:LZ) CFO Noel Bertram Watson sold 15,000 shares of the firm’s 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 of the company’s stock, valued at $10,306,785.60. This trade represents a 1.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

LegalZoom.com Stock Performance

Shares of LZ opened at $6.56 on Friday. The stock has a 50-day moving average of $8.99 and a two-hundred day moving average of $9.77. The stock has a market cap of $1.16 billion, a P/E ratio of 82.01, a P/E/G ratio of 1.12 and a beta of 1.22. LegalZoom.com, Inc. has a one year low of $6.29 and a one year high of $12.40.

LegalZoom.com (NASDAQ:LZ) last released its earnings results 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 analyst estimates of $184.85 million. LegalZoom.com had a return on equity of 6.17% and a net margin of 2.04%.The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period last year, the firm earned $0.19 EPS. Analysts predict that LegalZoom.com, Inc. will post 0.25 EPS for the current fiscal year.

LegalZoom.com announced that its board has approved a stock repurchase plan on Thursday, February 19th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to purchase 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 shares are undervalued.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on LZ shares. JPMorgan Chase & Co. lowered their price target on shares of LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating on the stock in a report on Wednesday. Zacks Research lowered shares of LegalZoom.com from a “hold” rating to a “strong sell” rating in a research report on Monday, January 19th. Citigroup decreased their price objective on shares of LegalZoom.com from $12.00 to $10.50 and set a “neutral” rating for the company in a research report on Friday, November 21st. William Blair raised shares of LegalZoom.com from a “market perform” rating to an “outperform” rating in a research note on Thursday, November 6th. Finally, Morgan Stanley raised their price objective on LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a report on Thursday, November 13th. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, LegalZoom.com has an average rating of “Hold” and a consensus price target of $10.42.

Key Headlines Impacting LegalZoom.com

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

Institutional Trading of LegalZoom.com

Large investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. lifted its holdings in LegalZoom.com by 165.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,730,487 shares of the company’s stock valued at $37,044,000 after purchasing an additional 2,324,481 shares in the last quarter. Boston Partners purchased a new position in shares of LegalZoom.com in the third quarter worth about $20,686,000. Neumeier Poma Investment Counsel LLC acquired a new position in LegalZoom.com during the third quarter worth about $18,106,000. Qube Research & Technologies Ltd grew its stake in LegalZoom.com by 180.5% during the 2nd quarter. Qube Research & Technologies Ltd now owns 1,797,252 shares of the company’s stock valued at $16,014,000 after acquiring an additional 1,156,462 shares in the last quarter. Finally, Norges Bank purchased a new stake in LegalZoom.com during the 4th quarter valued at about $10,526,000. 81.99% of the stock is currently owned by hedge funds and other institutional investors.

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.