Key Points
Chief Legal Officer Nicole Miller of LegalZoom.com (NASDAQ:LZ) made an open-market sale of 23,506 shares on November 18, 2025, as disclosed in this SEC Form 4 filing.
Transaction summary
|
Metric |
Value |
|---|---|
|
Shares sold |
23,506 |
|
Shares withheld |
203,571 |
|
Transaction value (shares sold) |
~$226,400 |
|
Post-transaction shares |
868,627 |
|
Post-transaction value (direct ownership) |
~$8.2 million |
Transaction value based on SEC Form 4 weighted average purchase price ($9.63); post-transaction value based on Nov. 18, 2025 market close ($9.41).
Key questions
-
What proportion of Nicole Miller’s direct holdings did the open-market sale represent?
The sale represented approximately 2.63% of direct ownership as of the transaction date, aligning with the median percentage of holdings sold in prior transactions by the insider. -
How does the size of this sale compare to previous open-market dispositions?
This sale of 23,506 shares is close to the historical median for Nicole Miller’s open-market sales, which have ranged from 20,621 to 24,557 shares over the observable periods, indicating consistency in trade sizing. -
What was the context and purpose of the large share withholding?
On Nov. 15, 203,571 shares were withheld not as part of a discretionary sale, but rather, as an automatic tax withholding triggered by the vesting of restricted stock units, a routine administrative event to satisfy tax obligations. -
How does the transaction relate to market performance and current holdings?
Following this transaction, direct ownership totals 868,627 shares, valued at approximately $8.2 million using the closing price on November 18, 2025. This maintains the insider’s position at 0.49% of outstanding shares, with LegalZoom.com shares up 16.22% over the past year as of the transaction date.
Company overview
|
Metric |
Value |
|---|---|
|
Revenue (TTM) |
$727.48 million |
|
Net income (TTM) |
$22.22 million |
|
1-year price change |
16.22% |
* 1-year price change calculated using November 18, 2025 as the reference date.
Company snapshot
-
LegalZoom.com offers online legal and compliance solutions, including business formation, estate planning, intellectual property protection, tax preparation, and bookkeeping services.
-
The company serves small businesses and individuals seeking accessible, technology-driven legal and business support in the United States.
LegalZoom.com operates a scalable online platform that simplifies legal and compliance processes for small businesses and individuals.
Foolish take
Chief Legal Officer Nicole Miller’s sale of 23,506 shares of LegalZoom on Nov. 18 does not appear to be a red flag, given she still holds nearly 900,000 shares. Her Nov. 15 disposition of 203,571 LegalZoom shares was related to a tax withholding obligation.
Ms. Miller’s Nov. 18 sale came not long after shares hit a 52-week high of $12.40 on Nov. 6. The stock’s rise is understandable since LegalZoom is doing well in 2025.
The company delivered record third quarter revenue of $190.2 million, representing 13% year-over-year growth. The strong Q3 sales led to LegalZoom raising its 2025 full-year outlook to a range between $748 million to $752 million, which represents growth over 2024’s $682 million.
Given LegalZoom’s success and that Ms. Miller’s sale appears related to some profit-taking after the stock price rose, shareholders don’t need to feel pressure to sell at this point.
However, now is not a good time to buy, considering LegalZoom’s price-to-earnings ratio of 76 is higher than it’s been for most of the past year, suggesting shares are on the pricey side.
Glossary
Open-market sale: The sale of securities by an insider on a public exchange, not through private or pre-arranged transactions.
Insider: A company executive, director, or significant shareholder with access to non-public company information.
SEC Form 4: A required filing that discloses insider trades of company securities to the public.
Weighted average purchase price: The average price paid per share, weighted by the number of shares in each transaction.
Restricted stock units (RSUs): Company shares granted to employees that vest over time, often subject to performance or service conditions.
Vesting: The process by which an employee earns the right to receive full benefits from stock grants or options over time.
Tax withholding (in equity compensation): Automatic sale or retention of shares to cover income taxes due when equity awards vest.
Direct ownership: Shares held and controlled directly by an individual, not through trusts or indirect arrangements.
Outstanding shares: The total number of a company’s shares currently held by all shareholders, including insiders and the public.
Discretionary sale: A voluntary sale of shares by an insider, as opposed to automatic or required transactions.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has positions in LegalZoom.com. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.