LZ LegalZoom.com Inc

Pacer Advisors Inc. has reduced its stake in LegalZoom.com (NASDAQ:LZ) by 25.3% in the third quarter, now holding 554,330 shares valued at $5.75 million. Despite missing EPS estimates, LegalZoom reported strong revenue growth, and institutional ownership stands at nearly 82%. The company's stock trades near $10 with a consensus "Hold" rating from analysts and an average target price of $11.50.

InvestingPro's Fair Value models identified LegalZoom.com, Inc. (NASDAQ:LZ) as significantly undervalued in July 2024, leading to a 63% surge in its share price by December 2025. This performance underscores the effectiveness of InvestingPro's analytical approach in identifying undervalued stocks and optimal entry points. The company's strong brand, subscription model shift, and a collaboration with OpenAI contributed to investor confidence and improved analyst sentiment.

Rice Hall James & Associates LLC has acquired a new stake of 327,217 shares in LegalZoom.com, Inc. (NASDAQ:LZ), valued at approximately $3.40 million. This investment comes as LegalZoom insiders, including CFO Noel Bertram Watson and Nicole Miller, recently sold shares, though insiders still collectively own 5.90% of the company. LegalZoom reported Q3 EPS of $0.17, missing estimates by $0.03, but revenue exceeded expectations at $190.16 million, marking a 12.8% year-over-year increase.

Voya Investment Management LLC significantly increased its stake in LegalZoom.com (NASDAQ:LZ) by 368.6% in Q3, now owning 406,847 shares valued at $4.22 million. This move is notable as institutional investors now hold nearly 82% of the company, despite mixed analyst ratings and recent insider selling by CFO Noel Watson and Nicole Miller following an earnings miss.

Harbor Capital Advisors Inc. has reduced its stake in LegalZoom.com, Inc. by selling 588,419 shares, leaving 339,764 shares worth approximately $3.53 million. Despite missing EPS estimates, LegalZoom.com exceeded revenue expectations with $190.16 million, marking a 12.8% year-over-year increase. Analysts currently have a "Hold" rating on the stock with a consensus price target of $11.50, while the stock trades near $10.02.

An analyst report evaluates LegalZoom (LZ) after its Q3 earnings, advising investors against buying the stock. Key concerns include disappointing long-term revenue growth, stalled customer spending (ARPU), and poor marketing efficiency that drains profits. The report suggests that while the valuation is reasonable, there are more exciting investment opportunities elsewhere.