Is LegalZoom Stock a Buy or Sell After the Chief Legal Officer Dumped Over 23,000 Shares?

Core Insights - LegalZoom.com achieved record revenue in the third quarter, with sales of $190.2 million, reflecting a 13% year-over-year growth [9] - The company raised its full-year 2025 revenue outlook to between $748 million and $752 million, indicating growth from 2024's $682 million [9] - Chief Legal Officer Nicole Miller sold 23,506 shares on November 18, 2025, which represented approximately 2.63% of her direct ownership [6] Company Overview - LegalZoom.com operates an online platform that simplifies legal and compliance processes for small businesses and individuals [5] - The company reported a total revenue of $727.48 million and a net income of $22.22 million for the trailing twelve months (TTM) [4] - The stock price increased by 16.22% over the past year, with a closing price of $9.41 on November 18, 2025 [4][6] Insider Transactions - Nicole Miller's sale of shares is consistent with her historical trading patterns, as it aligns with the median size of her previous open-market sales [6] - The sale followed a significant withholding of 203,571 shares on November 15, which was related to tax obligations from the vesting of restricted stock units [6][8] - Post-transaction, Miller retains 868,627 shares valued at approximately $8.2 million, maintaining a 0.49% stake in the company [6] Market Performance - LegalZoom's stock reached a 52-week high of $12.40 on November 6, 2025, contributing to the perception of the recent share sale as profit-taking [8] - Despite the positive performance, the current price-to-earnings ratio of 76 suggests that shares may be considered expensive at this time [10]