Four companies – Vertiv Holdings, Lumentum Holdings, Coherent and EchoStar – will be added to the S&P 500 index, effective before the market opens on Monday, March 23, according to announcements made Friday by S&P Dow Jones Indices.
The addition of these companies will necessitate the removal of four existing constituents: Match Group, Molina Healthcare, Lamb Weston Holdings, and Paycom, S&P DJI stated. The reshuffle is part of the index provider’s quarterly rebalance, designed to ensure each index accurately reflects its respective market capitalization range.
Vertiv Holdings (NYSE: VRT), a provider of data center equipment, saw its stock price surge 5.6% in after-hours trading following the announcement, according to Investing.com. EchoStar Corporation (NASDAQ: SATS) and Lumentum Holdings Inc (NASDAQ: LITE) likewise experienced gains. Coherent Inc (NYSE: COHR) will also join the index.
The changes also impact the S&P 100, with Micron Technology, Lam Research, Applied Materials, and GE Vernova set to be added. PayPal Holdings, American International Group, Metlife, and Target will be removed from the S&P 100 to accommodate these changes.
Prior to the March 23 adjustments, NAPCO Security Technologies (NASD: NSSC) will replace Alexander & Baldwin Inc. (NYSE: ALEX) in the S&P SmallCap 600, effective prior to the opening of trading on Friday, March 13. The change follows an acquisition of Alexander & Baldwin by an investor group comprised of MW Group and funds affiliated with DivcoWest and Blackstone Real Estate.
S&P DJI stated that the adjustments are intended to maintain the integrity of the market’s most-watched gauges. Investors anticipate the changes will trigger significant portfolio rebalancing by institutional managers.
