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

February 20, 2026 by InsiderTrades.com

Key Points

CFO Noel Watson sold 15,000 shares at an average price of $6.96 for $104,400, trimming his stake by about 1% though he still owns ~1.48M shares (~$10.3M); the filing notes insider selling that can add near‑term downward pressure.
LegalZoom beat Q4 revenue estimates ($190.3M vs. $184.9M) with revenue up ~17.7% year‑over‑year, but missed EPS by $0.01 (reported $0.17), while reporting strong cash flow and no debt.
The board approved a $100 million buyback (up to ~8.1% of shares), signaling management thinks the stock is undervalued, though the shares trade near their 12‑month low (~$6.48) and analysts remain mixed (average rating: Hold; average price target: $10.90).

LegalZoom.com, Inc. (NASDAQ:LZ - Get Free Report) CFO Noel Bertram Watson sold 15,000 shares of the business's stock in a transaction that occurred 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 owned 1,480,860 shares of the company's stock, valued at approximately $10,306,785.60. This represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

LegalZoom.com Price Performance

Shares of LZ stock traded down $0.57 on Friday, hitting $6.48. 3,210,243 shares of the company's stock were exchanged, compared to its average volume of 3,864,313. The company has a 50 day moving average of $9.06 and a 200 day moving average of $9.78. LegalZoom.com, Inc. has a 12 month low of $6.41 and a 12 month high of $12.40. The stock has a market cap of $1.15 billion, a P/E ratio of 53.71, a price-to-earnings-growth ratio of 1.19 and a beta of 1.22.

LegalZoom.com (NASDAQ:LZ - Get Free Report) last released 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 analyst estimates of $184.85 million. LegalZoom.com had a return on equity of 9.91% and a net margin of 3.05%.LegalZoom.com'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 company earned $0.19 earnings per share. Sell-side analysts predict that LegalZoom.com, Inc. will post 0.25 EPS for the current fiscal year.

LegalZoom.com declared that its board has approved a stock repurchase plan on Thursday, February 19th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to repurchase up to 8.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Zacks Research downgraded shares of LegalZoom.com from a "hold" rating to a "strong sell" rating in a research report on Monday, January 19th. Weiss Ratings reiterated a "hold (c)" rating on shares of LegalZoom.com in a report on Monday, December 29th. Morgan Stanley boosted their price objective on shares of LegalZoom.com from $8.50 to $9.00 and gave the stock an "underweight" rating in a research note on Thursday, November 13th. Wall Street Zen lowered LegalZoom.com from a "strong-buy" rating to a "buy" rating in a research report on Saturday, November 1st. Finally, William Blair upgraded LegalZoom.com from a "market perform" rating to an "outperform" rating in a research report on Thursday, November 6th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, LegalZoom.com presently has an average rating of "Hold" and an average price target of $10.90.

View Our Latest Stock Analysis on LegalZoom.com

Key LegalZoom.com News

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

Positive Sentiment: Q4 and full‑year results showed revenue and cash flow strength: Q4 revenue beat consensus ($190.3M vs. $184.9M), full‑year revenue +11% and record operating cash flow and free cash flow; company reports Adjusted EBITDA exceeded outlook and ended the year with $203.1M cash and no debt. GlobeNewswire: Press Release
Positive Sentiment: Board authorized a $100 million share repurchase (up to ~8.1% of shares), signaling management views the stock as undervalued and returning capital to shareholders. RTT News: Buyback
Positive Sentiment: Revenue guidance for FY‑2026 ($805M–$825M) is at or slightly above consensus; Q1 revenue guide ($200M–$203M) is roughly in line — supports continued top‑line growth expectations. (See company release above.)
Neutral Sentiment: Results were mixed: EPS missed by $0.01 (reported $0.17 vs. $0.18 consensus) even as revenue grew strongly year‑over‑year — margin/earnings leverage remains a watch item. MarketBeat: Earnings
Neutral Sentiment: Management commentary (earnings call transcript) will be important for clarity on margin drivers, customer mix (upmarket shift) and cadence of subscription growth. Seeking Alpha: Transcript
Neutral Sentiment: Reported short interest data appears anomalous/insignificant in the filings today and is not presenting a meaningful days‑to‑cover signal.
Negative Sentiment: JPMorgan has reduced its price target and issued a more cautious outlook on LZ, citing concerns that temper upside expectations — that analyst tone likely pressured the shares. AmericanBankingNews: JPMorgan Pessimistic Forecast (Earlier JPMorgan note lowering PT from $14 to $11 was reported as well.) Benzinga: PT Cut
Negative Sentiment: Insider selling: CFO Noel Watson sold 15,000 shares at about $6.96. While not large relative to his holdings, insider sales can create near‑term downward pressure. SEC Form 4

Hedge Funds Weigh In On LegalZoom.com

Several institutional investors have recently added to or reduced their stakes in LZ. Arrowstreet Capital Limited Partnership boosted its holdings in shares of LegalZoom.com by 20.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 4,408,170 shares of the company's stock worth $45,757,000 after buying an additional 758,367 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in LegalZoom.com by 165.3% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,730,487 shares of the company's stock worth $37,044,000 after acquiring an additional 2,324,481 shares in the last quarter. Boston Partners grew its holdings in LegalZoom.com by 81.0% in the fourth quarter. Boston Partners now owns 3,623,111 shares of the company's stock worth $36,054,000 after purchasing an additional 1,621,125 shares during the period. Franklin Resources Inc. increased its stake in LegalZoom.com by 2.8% in the third quarter. Franklin Resources Inc. now owns 3,327,296 shares of the company's stock valued at $34,537,000 after purchasing an additional 90,599 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in shares of LegalZoom.com by 12.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,021,764 shares of the company's stock valued at $30,007,000 after purchasing an additional 340,780 shares during the period. 81.99% of the stock is owned by institutional investors and hedge funds.

LegalZoom.com Company Profile

(Get Free Report)

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.