LegalZoom Announces Increase to its Existing Share Repurchase Authorization
Rhea-AI Summary
LegalZoom.com announced on May 22, 2024, that its Board of Directors has authorized an additional $75 million increase to the existing stock repurchase program, raising the total authorization to $175 million. As of May 21, 2024, LegalZoom has repurchased approximately 5.9 million shares at an average price of $10.10 per share, totaling around $59 million, leaving $116 million available for future repurchases. CEO Dan Wernikoff emphasized that this move aligns with the company's balanced capital allocation strategy, driven by strong cash generation. The repurchase program’s execution will depend on market conditions and other factors, and it has no fixed expiration date.
Positive
- Increase of $75 million to the stock repurchase program, bringing the total to $175 million.
- Repurchased 5.9 million shares at an average price of $10.10 per share, totaling $59 million.
- Remaining authorization of $116 million available for future repurchases.
- Company’s strong cash generation supports balanced capital allocation strategy.
- No fixed expiration date for the stock repurchase program, offering flexibility.
Negative
- Stock repurchase program does not obligate the company to acquire any specific amount of common stock.
- The program may be modified, suspended, or terminated at any time by the Board of Directors.
News Market Reaction
On the day this news was published, LZ gained 2.94%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
MOUNTAIN VIEW, Calif., May 22, 2024 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), the No. 1 choice in online small business formations, today announced that its Board of Directors has authorized an increase of
“Today’s announcement reflects our balanced capital allocation strategy which is supported by our strong cash generation,” said Dan Wernikoff, Chief Executive Officer of LegalZoom. “Our solid financial position provides us the ability to balance investments in our growth strategies, including long-term product development, with shareholder returns.”
Repurchases pursuant to the Company’s stock repurchase program may be made from time to time, based on market conditions, legal requirements and other corporate considerations, through any manner, including open market transactions, accelerated stock repurchase agreements, or privately negotiated transactions with third parties, and in such amounts as management deems appropriate. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares of common stock. The stock repurchase program, which has no fixed expiration date, does not obligate the Company to acquire any particular amount of common stock and may be modified, suspended or terminated at any time at the discretion of the Company’s Board of Directors.
About LegalZoom
LegalZoom is the leading online platform for business formation in the United States. Driven by a mission to unleash entrepreneurship, LegalZoom delivers comprehensive legal, tax and compliance products and expertise for small business owners through easy-to-use technology. From free business formations to business management solutions and professional advisory services, LegalZoom supports millions of small business owners and their families throughout the entrepreneurial journey. Founded on the belief that everyone should have affordable access to legal and financial expertise, LegalZoom empowers entrepreneurs to make their dream a reality. To learn more about LegalZoom, visit www.legalzoom.com.
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FAQ
What is the total authorization for LegalZoom's stock repurchase program as of May 22, 2024?
How many shares has LegalZoom repurchased under its stock repurchase program?
What is the average price of the shares repurchased by LegalZoom?
How much money is still available under LegalZoom's stock repurchase authorization?
Does LegalZoom's stock repurchase program have a fixed expiration date?
