** LegalZoom.com LZ.O shares up 4.8% to $9.30 and hit two-week high on Weds as online legal services firm set to join S&P SmallCap index .SPCY next week

** LZ to replace Elme Communities ELME.N in SPCY effective Mon, Feb 2, S&P Dow Jones Indices announced late Tues

** Residential real estate investment trust ELME, which has announced ongoing liquidation activities, "is no longer appropriate for the S&P SmallCap 600," S&P Dow Jones Indices said

** In Nov, LZ reported Q3 rev increased ~13% yr/yr to $190.2 mln, topping consensus, and projected Q4 rev of $182-$186 mln, or 14% yr/yr growth at the midpoint

** Mountain View, California-based LZ has ~177.3 mln shares outstanding for about $1.6 bln market cap

** With the move on the session, shares down ~6% to begin the year after 32% gain in 2025

** Of 10 analysts covering the stock, recommendation breakdown is 4 "strong buy" or "buy", 5 "hold" and 1 "sell"; median PT $12, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))