LegalZoom.com (NASDAQ:LZ) reported an insider sale by Chief Legal Officer Nicole Miller, who sold 23,325 shares of common stock on February 26, 2026. The shares were sold at $6.63 apiece, producing gross proceeds of $154,644.
The transaction was carried out pursuant to a pre-established Rule 10b5-1 trading plan that Miller adopted on November 9, 2025, and was disclosed in a Form 4 filing with the Securities and Exchange Commission. The filing bears the signature of Michelle Sparks, Attorney-in-Fact for Nicole Miller, dated February 27, 2026.
Following the disposition, Miller is reported to directly own 813,033 shares of LegalZoom.com common stock.
Market context included in the company disclosure notes that LegalZoom shares have fallen 37% over the past six months. At the time of the reporting, the stock was trading at $7.04 and the company’s market capitalization was $1.22 billion.
Analyst and market notes
InvestingPro analysis cited within the report indicates that LegalZoom is undervalued relative to its Fair Value and lists the company among names on its Most Undervalued roster. The company is described as maintaining a strong balance sheet characterized by having more cash than debt, and the shares trade at a price-to-earnings ratio of 80.81.
Separately, the company gained attention after S&P Dow Jones Indices announced that LegalZoom will be added to the S&P SmallCap 600 index, a change scheduled to take effect in early 2026. That announcement corresponded with a notable uptick in the stock’s value at the time it was made public.
In coverage activity referenced in the filing, Citizens reiterated a Market Perform rating on the company. The firm highlighted LegalZoom’s strategic positioning in the business formation market and pointed to the company’s brand awareness, which Citizens quantified as roughly five times greater than that of its competitors.
Summary
Nicole Miller sold 23,325 shares of LegalZoom on February 26, 2026, under a 10b5-1 plan, receiving $6.63 per share for total proceeds of $154,644. The sale was reported in a Form 4 signed February 27, 2026. The company’s shares have declined 37% over six months, trade at $7.04 with a $1.22 billion market cap, and are noted by InvestingPro as potentially undervalued. LegalZoom is slated for inclusion in the S&P SmallCap 600 in early 2026, and Citizens has maintained a Market Perform rating while highlighting strong brand awareness in the business formation market.
Key points
- Insider sale: Nicole Miller sold 23,325 shares on February 26, 2026, at $6.63 per share, totaling $154,644.
- Company fundamentals and coverage: InvestingPro lists LegalZoom among undervalued names and notes more cash than debt; shares trade at a P/E of 80.81.
- Market developments: LegalZoom was announced for inclusion in the S&P SmallCap 600 with the change taking effect in early 2026, and Citizens reiterated a Market Perform rating citing strong brand awareness in business formation.
Risks and uncertainties
- Share-price volatility: The stock has dropped 37% over the past six months, indicating recent price weakness that may concern equity investors.
- Valuation considerations: The company trades at a high P/E ratio of 80.81, which represents potential valuation risk relative to earnings expectations.
- Market perception dependence: Investor response to index inclusion and analyst ratings could influence near-term stock performance, given the company’s reliance on brand-driven positioning in the business formation market.