Jeffrey M. Stibel, CEO of LegalZoom.com (LZ), made headlines with an open-market purchase of 125,000 shares valued at approximately $769,000, as reported in a recent SEC filing. This transaction, executed at a weighted average price of $6.15 per share, marks Stibel’s first open-market buy in over a year, following a significant reduction in his holdings.
This purchase comes amid a challenging year for LegalZoom, with shares down 35.2% year-over-year and hitting a 52-week low of $5.28 in April. Despite these pressures, the company reported a 13% year-over-year sales growth to $206.8 million in Q1 and raised its full-year revenue guidance, indicating resilience in its business model. Stibel’s decision to increase his stake suggests a bullish outlook, particularly as the stock appears undervalued with a forward P/E ratio of six, half of what it was a year ago.
For investors, Stibel’s purchase serves as a potential signal of confidence in LegalZoom’s recovery and growth trajectory, especially as the company continues to navigate market challenges and capitalize on its strong service offerings.
Source: fool.com