Exploring LegalZoom.com, Inc. (LZ) Investor Profile: Who’s Buying and Why?

Are you curious about who's investing in LegalZoom and why? As of April 15, 2025, LegalZoom's stock is trading at $7.09 per share, marking a 41.93% decrease from its price of $12.21 on April 16, 2024. Despite this dip, institutional investors hold a significant 89.67% of LegalZoom's shares, totaling 157,901,314 shares. Could this be a strategic move, or are there other factors at play? Join us as we delve into the investor profile of LegalZoom, exploring who the major players are and what their investment strategies might reveal about the company's future.

LegalZoom.com, Inc. (LZ) Who Invests in LegalZoom.com, Inc. (LZ) and Why?

Understanding the investor profile of LegalZoom.com, Inc. (LZ) involves examining the diverse range of individuals and institutions that hold its stock, as well as the motivations driving their investment decisions. These investors typically include retail investors, institutional investors, and potentially hedge funds, each with distinct investment strategies and objectives.

Key Investor Types:

The investor base of LegalZoom.com, Inc. (LZ) can be broadly categorized into the following groups:

• Retail Investors: These are individual investors who buy and sell LegalZoom.com, Inc. (LZ) shares for their own accounts. Retail investors may be attracted to LegalZoom.com, Inc. (LZ) due to its brand recognition, ease of use, and potential for growth in the online legal services market.
• Institutional Investors: These are organizations that invest on behalf of their clients or members. They include mutual funds, pension funds, insurance companies, and investment banks. Institutional investors often have a longer-term investment horizon and conduct in-depth research before investing.
• Hedge Funds: These are investment partnerships that use a variety of strategies to generate returns for their investors. Hedge funds may invest in LegalZoom.com, Inc. (LZ) if they believe it is undervalued or if they see an opportunity to profit from short-term price movements.

Investment Motivations:

Several factors might attract investors to LegalZoom.com, Inc. (LZ):

• Growth Prospects: The online legal services market is growing rapidly, and LegalZoom.com, Inc. (LZ) is well-positioned to capitalize on this growth. Investors may be attracted to LegalZoom.com, Inc. (LZ)’s potential to increase its revenue and earnings in the future.
• Market Position: LegalZoom.com, Inc. (LZ) is a leading provider of online legal services, with a strong brand reputation and a large customer base. This dominant market position may give investors confidence in LegalZoom.com, Inc. (LZ)’s ability to maintain its competitive advantage.

Investment Strategies:

The investment strategies employed by LegalZoom.com, Inc. (LZ) investors can vary significantly depending on their investment goals and risk tolerance:

• Long-Term Holding: Some investors may choose to hold LegalZoom.com, Inc. (LZ) shares for the long term, believing in the company's long-term growth potential. These investors are typically less concerned with short-term price fluctuations and more focused on the company's fundamentals.
• Short-Term Trading: Other investors may engage in short-term trading, seeking to profit from short-term price movements in LegalZoom.com, Inc. (LZ) shares. These investors may use technical analysis or other trading strategies to identify potential buying and selling opportunities.
• Value Investing: Value investors look for companies that they believe are undervalued by the market. They may be attracted to LegalZoom.com, Inc. (LZ) if they believe its current stock price does not reflect its true intrinsic value.

For those interested in delving deeper into LegalZoom.com, Inc. (LZ)'s core principles, more information is available here: Mission Statement, Vision, & Core Values of LegalZoom.com, Inc. (LZ).

LegalZoom.com, Inc. (LZ) Institutional Ownership and Major Shareholders of LegalZoom.com, Inc. (LZ)

Institutional investors and major shareholders play a significant role in the financial landscape of LegalZoom.com, Inc. (LZ). As of December 31, 2024, data indicates that institutional investors hold a substantial portion of LegalZoom's shares. Understanding who these investors are, their recent activities, and their potential impact is crucial for current and prospective shareholders.

As of April 15, 2025, the share price was $7.09 per share. Previously, on April 16, 2024, the share price was $12.21 per share, representing a 41.93% decline over that period.

The ownership structure of LegalZoom (LZ) stock is a mix of institutional, retail, and individual investors.

• Approximately 46.29% of the company's stock is owned by Institutional Investors
• 8.06% is owned by Insiders
• 45.65% is owned by Public Companies and Individual Investors

Top Institutional Investors

Here are the top institutional holders of LegalZoom.com, Inc. (LZ) as of December 31, 2024:

• Francisco Partners Management, LP: Holds 28.63 million shares, representing 16.26% of the company, valued at $188,643,657.
• Vanguard Group Inc: Holds 20.27 million shares, representing 11.51% of the company, valued at $133,590,960.
• Technology Crossover Management IX, Ltd.: Holds 16.4 million shares, representing 9.31% of the company, valued at $108,051,705.
• GPI Capital, LP: Holds 9.54 million shares, representing 5.42% of the company, valued at $62,881,227.
• BlackRock, Inc.: Holds 9.45 million shares, representing 5.37% of the company, valued at $62,307,614.
• Hawk Ridge Capital Management, LP: Holds 5.86 million shares, representing 3.33% of the company, valued at $38,630,396.
• Renaissance Technologies, LLC: Holds 3.53 million shares, representing 2.00% of the company, valued at $23,230,686.
• Ararat Capital Management, LP: Holds 3.25 million shares, representing 1.84% of the company, valued at $21,407,496.
• Franklin Resources, Inc.: Holds 3.09 million shares, representing 1.76% of the company, valued at $20,393,374.
• State Street Corporation: Holds 2.9 million shares, representing 1.65% of the company, valued at $19,115,606.

In addition to these major institutional holders, several mutual funds also have significant positions in LegalZoom.com, Inc. (LZ):

• VANGUARD INDEX FUNDS-Vanguard Total Stock Market Index Fund: Holds 4.98 million shares, representing 2.83%.
• VANGUARD INDEX FUNDS-Vanguard Small-Cap Index Fund: Holds 3.96 million shares, representing 2.25%.
• iShares Trust-iShares Russell 2000 ETF: Holds 3.34 million shares, representing 1.90% as of March 31, 2025.

Changes in Ownership

Institutional ownership in LegalZoom.com, Inc. (LZ) has seen some changes recently.

• Total shares owned by institutions decreased in the last three months by 4.25% to 168.708K shares.
• The number of institutions reporting positions in LegalZoom.com decreased by 1.44% in the last quarter.
• Average portfolio weight of all funds dedicated to LZ is 0.39%, an increase of 49.31%.

Specific changes in holdings by some of the major investors include:

• Vanguard Group Inc: Increased its holdings by 22.77%, acquiring 3,592,311 additional shares.
• BlackRock, Inc.: Their ownership remained the same with 10,202,875 shares.

Here's a summary of changes in positions as of December 31, 2024:

Impact of Institutional Investors

Institutional investors can significantly influence a company's stock price and overall strategy. Their actions often reflect their confidence in the company's prospects and can sway market sentiment.

• High institutional ownership can imply that LegalZoom.com's stock price is sensitive to their trading actions.
• Large-scale selling by major institutional investors can lead to a significant drop in share price.
• Conversely, increased buying activity can drive the stock price up.

Institutional investors also play a role in shaping company strategy through their voting rights and engagement with management. Their insights and expectations can influence key decisions regarding Mission Statement, Vision, & Core Values of LegalZoom.com, Inc. (LZ)., operations, and capital allocation.

Overall, LegalZoom.com, Inc. (LZ) has a substantial institutional presence, with these investors holding a significant percentage of the company's shares. Recent changes in ownership indicate active portfolio management by these institutions. The actions of these major players can have a notable impact on LegalZoom's stock performance and strategic direction.

LegalZoom.com, Inc. (LZ) Key Investors and Their Impact on LegalZoom.com, Inc. (LZ)

Understanding who invests in LegalZoom.com, Inc. (LZ) and why can offer valuable insights into the company's strategic direction and market confidence. Examining the investor profile—which includes notable investors, their influence, and recent activities—helps stakeholders gauge the potential impact on company decisions and stock performance. This analysis is crucial for anyone looking to make informed decisions about LegalZoom.com, Inc. (LZ).

While specific details on all individual investors might not be publicly available, significant institutional and major shareholders' activities are often disclosed through filings with the Securities and Exchange Commission (SEC). These filings provide a window into who holds substantial stakes and how they are trading those positions.

Key aspects of LegalZoom.com, Inc. (LZ)'s investor profile include:

• Notable Investors: Identifying major institutional investors or well-known investment funds that hold significant positions in LegalZoom.com, Inc. (LZ).
• Investor Influence: Assessing how these investors, particularly those with large stakes, can influence company decisions through voting rights or board representation.
• Recent Moves: Monitoring recent transactions by major investors, such as buying or selling large blocks of shares, which can signal confidence or concern about the company’s future performance.

Institutional investors often conduct thorough due diligence before investing, and their actions can significantly affect stock prices. For instance, a large purchase by a reputable fund might drive up demand, while a significant sell-off could signal underlying issues or a change in investment strategy.

Recent information regarding LegalZoom.com, Inc. (LZ)'s major shareholders can be gleaned from financial news outlets and SEC filings. These sources provide updated details on institutional ownership and any recent changes in holdings.

For example, according to Yahoo Finance, as of Q4 2023, the top 10 holders of LegalZoom.com, Inc. (LZ) include:

• The Vanguard Group, Inc.
• Blackrock Inc.
• Fidelity Management & Research Co.
• TimesSquare Capital Management, LLC
• Renaissance Technologies LLC
• Driehaus Capital Management LLC
• Geode Capital Management, LLC
• State Street Corp.
• Dimensional Fund Advisors LP
• Norges Bank Investment Management

These institutional investors manage substantial assets, and their investment decisions are closely watched by the market. Their influence stems from the size of their holdings and their potential to sway voting outcomes on key company matters. Recent moves by these investors, such as increasing or decreasing their positions, can provide insights into their assessment of LegalZoom.com, Inc. (LZ)’s prospects.

To further understand LegalZoom.com, Inc. (LZ), consider exploring its Mission Statement, Vision, & Core Values of LegalZoom.com, Inc. (LZ).

LegalZoom.com, Inc. (LZ) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for assessing the potential future performance of LegalZoom.com, Inc. (LZ). Examining major shareholders' feelings, how the stock market responds to ownership changes, and analysts' perspectives provides a comprehensive view for investors.

Investor sentiment toward LegalZoom.com, Inc. (LZ) can be gauged through various indicators. While pinpointing a singular 'current sentiment' as universally positive, neutral, or negative is challenging, monitoring major shareholders' actions and statements offers valuable insights. Increased buying activity by institutional investors might suggest a positive outlook, whereas significant selling could indicate concerns. News articles, financial reports, and analyst ratings also contribute to understanding the prevailing sentiment.

Recent market reactions to changes in ownership or large investor moves can significantly impact LegalZoom.com, Inc. (LZ)'s stock price. For instance, a notable increase in institutional ownership might lead to a price surge, reflecting increased confidence in the company's prospects. Conversely, a major sell-off by a prominent investor could trigger a price decline. Keeping an eye on these movements and their immediate effects on the stock is essential for investors.

Analyst perspectives play a vital role in shaping investor understanding of LegalZoom.com, Inc. (LZ)'s future. Analysts often provide ratings (e.g., buy, sell, hold), price targets, and detailed reports that assess the company's financial health, growth potential, and competitive positioning. These insights can highlight the potential impact of key investors on LegalZoom.com, Inc. (LZ)'s strategic direction and overall performance. For example, analysts might comment on how a particular investor's expertise or resources could benefit the company's expansion plans or innovation efforts.

Institutional ownership is a significant factor in LegalZoom.com, Inc. (LZ)'s stock dynamics. Data on institutional holdings can reveal trends in investor confidence and potential price movements. Major institutional investors often have substantial resources and conduct thorough research before making investment decisions, making their activity a noteworthy indicator for other investors.

To stay informed about LegalZoom.com, Inc. (LZ)'s financial health and investor-related news, consider exploring resources like this: Breaking Down LegalZoom.com, Inc. (LZ) Financial Health: Key Insights for Investors