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

LegalZoom.com (NASDAQ:LZ) announced that its board 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 permits the company to reacquire up to 8.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

LegalZoom.com Trading Down 7.0%

Shares of LZ stock opened at $6.56 on Friday. The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of 82.01, a PEG ratio of 1.12 and a beta of 1.22. LegalZoom.com has a 12 month low of $6.29 and a 12 month high of $12.40. The business’s 50-day moving average price is $8.99 and its 200-day moving average price is $9.77.

LegalZoom.com (NASDAQ:LZ) last posted its quarterly earnings data on Thursday, February 19th. The company reported $0.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The company had revenue of $190.27 million for the quarter, compared to analysts’ expectations of $184.85 million. LegalZoom.com had a return on equity of 6.17% and a net margin of 2.04%.The business’s quarterly revenue was up 17.7% on a year-over-year basis. During the same quarter last year, the business posted $0.19 EPS. On average, sell-side analysts predict that LegalZoom.com will post 0.25 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Wall Street Zen lowered shares of LegalZoom.com from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 1st. 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 report on Thursday, November 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of LegalZoom.com in a report on Monday, December 29th. JPMorgan Chase & Co. reduced their target price on shares of LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating for the company in a report on Wednesday. Finally, William Blair raised shares of LegalZoom.com from a “market perform” rating to an “outperform” rating in a report on Thursday, November 6th. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, LegalZoom.com presently has a consensus rating of “Hold” and a consensus price target of $10.42.

Insider Buying and Selling at LegalZoom.com

In other LegalZoom.com 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 sale, the chief financial officer owned 1,480,860 shares in the company, valued at approximately $10,306,785.60. The trade was a 1.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 5.90% of the stock is owned by company insiders.

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

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.