LegalZoom.com (NASDAQ:LZ) Board of Directors Declares Stock Repurchase Program

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

LegalZoom.com Stock Up 1.1%

NASDAQ:LZ traded up $0.08 during mid-day trading on Thursday, hitting $7.05. 5,437,626 shares of the stock traded hands, compared to its average volume of 4,717,361. The business’s 50-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 PE ratio of 58.75, a price-to-earnings-growth ratio of 1.19 and a beta of 1.22. LegalZoom.com has a 12-month low of $6.47 and a 12-month 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 (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). LegalZoom.com had a return on equity of 9.91% and a net margin of 3.05%.The firm had revenue of $190.27 million during the quarter, compared to analysts’ expectations of $184.85 million. During the same quarter in the prior year, the company earned $0.19 earnings per share. The business’s revenue for the quarter was up 17.7% compared to the same quarter last year. Analysts anticipate that LegalZoom.com will post 0.25 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on LZ. Barclays lifted their price objective on LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Thursday, November 6th. Citigroup cut their target price 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 report on Thursday, November 6th. Wall Street Zen downgraded shares of LegalZoom.com from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 1st. Finally, Morgan Stanley lifted their price objective on shares of LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a research note on Thursday, November 13th. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, LegalZoom.com presently has a consensus rating of “Hold” and a consensus target price of $10.90.

Trending Headlines about LegalZoom.com

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.

Insider Activity

In related news, CFO Noel Bertram Watson sold 15,000 shares of the business’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $6.96, for a total transaction of $104,400.00. Following the completion of the transaction, the chief financial officer directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 5.90% of the company’s stock.

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.