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

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

LegalZoom.com Stock Up 1.1%

LegalZoom.com stock opened at $7.05 on Friday. The firm has a market capitalization of $1.25 billion, a PE ratio of 58.75, a P/E/G ratio of 1.19 and a beta of 1.22. LegalZoom.com has a 52 week low of $6.47 and a 52 week high of $12.40. The firm’s 50-day simple moving average is $9.06 and its 200 day simple moving average is $9.78.

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 the consensus estimate of $0.18 by ($0.01). The business 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%. The business’s revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the business posted $0.19 earnings per share. On average, research analysts expect that LegalZoom.com will post 0.25 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on LZ shares. Morgan Stanley boosted their price target 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. Barclays upped their price target on LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a research note on Thursday, November 6th. JPMorgan Chase & Co. dropped their price objective on LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating for the company in a research note on Wednesday. Weiss Ratings reiterated a “hold (c)” rating on shares of LegalZoom.com in a report on Monday, December 29th. Finally, Wall Street Zen cut LegalZoom.com from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 1st. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, LegalZoom.com presently has a consensus rating of “Hold” and an average target price of $10.90.

Insider Buying and Selling

In other news, CFO Noel Bertram Watson sold 15,000 shares of the business’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 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 legal filing with the SEC, which is available through the SEC website. Company insiders own 5.90% of the company’s stock.

LegalZoom.com News Roundup

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.

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.