More Investors Are Shorting j2 Global, Inc. (JCOM)

In the period that ended January 31, 2019, short interest in j2 Global, Inc. (NASDAQ:JCOM) stock is on the rise. The 3.03% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 1.6 suggests selling these shares. Between January 15 and January 31, the total number of shorted shares amounted to 3.98 million shares. That was 117,075 more shares than the total of 3.86 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for JCOM at the January 31st settlement plunged to 276,649, as compared to 284,711 at the January 15th report. That brought days to cover to 14.37552, a 6.04% increase from the 13.55725 days to cover recorded at the prior short interest data release.

Analysts are forecasting revenue to climb 8.1 percent to $342M in the next fiscal quarter, while earnings are seen soaring by nearly 13.41 percent to $2.03 per share. History has shown that shares in j2 Global, Inc. have gone up on 25 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.53 per share, better than the $1.51, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $346M, better than the $342M analysts expected. Earnings are estimated to increase by 0.7 percent this year, 7.28 percent next year and continue to increase by 8 percent annually for the next 5 years.

j2 Global, Inc. (JCOM) will probably climb 16.94 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $104 price as 12-month high target. This represents a whopping 27.02 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $95, which represents a return potential of 16.02 percent when compared to the closing price of the stock of $81.88 on Wednesday, February 13. The lowest price target for the stock is $84 — slightly more than 2.59 percent from JCOM’s current share price.

The stock is currently hovering around the first support level of $78.79. Below this, the next support is placed in the zone of $75.69. Till the time, the JCOM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 72.17 on daily chart, which may remain a cause for concern. If the price breaks below $75.69 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $84.19 mark may result into a pull-back move towards $86.49 level.

On 13th of February, j2 Global, Inc. (NASDAQ:JCOM) shares ended higher after a volatile session. The shares accumulated 6.69 points or 8.9 percent at $81.88 with a light trade volume of 1.566 million shares. After opening the session at $78.01, the shares went as high as $83.4 and as low as $78, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.07 billion and now has 49.76 million shares outstanding. j2 Global, Inc. (JCOM) stock has gained 15.15 percent of market value in 21 trading days.

JCOM stock has a trailing 3-year beta of 0.85, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.91 a share in the trailing twelve months. The stock’s value has surged 18.02 percent year to date (YTD) against a rise of 11.75 percent in 12 month’s time. The company’s shares still trade -10.59 percent away from its 1-year high of $91.58 and 25.83 percent up from 52-week low of $65.07. The average consensus rating on the company is 1.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of j2 Global, Inc. (JCOM) are trading at a P/E ratio of 25.8 times earnings reported for the past 12 months. The industry JCOM operates in has an average P/E of 19.69. Its P/E ratio went as low as 21.89X and as high as 30.11 over the 5-year span. Further, it is sporting a 3.46 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.29. 83.8 percent is the gross profit margin for j2 Global, Inc. and operating margin sits at 17.3 percent. Along with this, the net profit margin is 8.1 percent.

Let’s take a look at some insider activity at j2 Global, Inc. (NASDAQ:JCOM) and see the pattern. The earliest insider trade took place on 12/17/2018. Shah Vivek parted with a total of 3 thousand shares of company at average share price of $70.24. The total for the sales was set at $210.72 thousand. After this transaction, the CEO account balance stood at 711.83 thousand shares. The stock grew 7.05 percent since that insider sale. On 11/15/2018, Shah Vivek, CEO, sold 3 thousand shares at a price per share of $71.9. This removed 215.7 thousand shares from the insider’s fortune and the stock saw a 4.58 percent rally in value since the news became public. This transaction left 714.83 thousand shares in the CEO account.

On 10/15/2018, CEO Shah Vivek performed a sale transaction worth $217.65 thousand. This sale at $72.55 each has eliminated 3 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 3.64 percent increase since the transaction was reported. The insider now is left with 717.83 thousand shares remaining in the account. Shah Vivek, who performs the CEO job, sold 3 thousand shares for $246.69 thousand. The disposal occurred on 09/17/2018 was priced at $82.23 per share. The share price plunged -8.56 percent since the reporting date. Shah Vivek now left with a stake of 720.83 thousand JCOM stock worth $59.02 million after the insider selling.