What types of shareholders own LegalZoom.com, Inc. (NASDAQ: LZ)?
If you want to know who really controls LegalZoom.com, Inc. (NASDAQ: LZ), then you will need to look at the makeup of their share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.
LegalZoom.com is a fairly large company. It has a market capitalization of 5.3 billion US dollars. Normally, institutions would own a significant share of a company of this size. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s dig deeper into each type of owner to find out more about LegalZoom.com.
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What does institutional ownership tell us about LegalZoom.com?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
We can see that LegalZoom.com has institutional investors; and they own a good portion of the company’s shares. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see LegalZoom.com’s historical revenue and revenue below, but keep in mind that there is always more to tell.
Hedge funds don’t have a lot of stock in LegalZoom.com. Permira Advisers Ltd. is currently the main shareholder of the company with 19% of the shares outstanding. With respectively 15% and 6.6% of the shares outstanding, Francisco Partners Management, LP and Institutional Venture Partners are the second and third shareholders.
Looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a say in the decisions of the company.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider Property of LegalZoom.com
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our data suggests that insiders own less than 1% of LegalZoom.com, Inc. in their own name. Keep in mind that this is a large company and insiders own $ 14 million in stock. The absolute value can be more important than the proportional part. Arguably recent purchases and sales are equally important to consider. You can click here to see if any insiders have bought or sold.
General public property
The general public has a 25% stake in LegalZoom.com. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
With a 51% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may seek to sell and redeploy the capital elsewhere.
While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we have identified 2 warning signs for LegalZoom.com (1 is significant) that you need to know.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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