Livent Set To Join S&P MidCap 400, Replacing NCR Voyix
Portfolio Pulse from Benzinga Newsdesk
Livent Corporation (LTHM) is set to join the S&P MidCap 400 index, taking the place of NCR Corporation (NCR), which will be removed from the index. This change is due to the acquisition of NCR by an affiliate of Veritas Capital, which will result in NCR becoming a private company. The S&P MidCap 400 index will also see the addition of Voya Financial, Inc. (VOYA), which will be replacing Livent in the S&P SmallCap 600 index.
December 19, 2023 | 10:33 pm
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NEUTRAL IMPACT
NCR Corporation's removal from the S&P MidCap 400 index is a result of its acquisition by Veritas Capital, which will make NCR a private entity. This change may have a neutral impact on its stock as it will no longer be publicly traded.
Since NCR Corporation is being acquired and will become a private company, its stock will no longer be publicly traded, making the index removal largely irrelevant for investors.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Livent Corporation's inclusion in the S&P MidCap 400 index could lead to increased demand for its shares from funds that track the index, potentially boosting its stock price in the short term.
Stocks that are added to a major index often see a short-term price increase as index funds and ETFs that track the index are required to purchase the stock, leading to higher demand.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Voya Financial, Inc. will be joining the S&P SmallCap 600 index, replacing Livent. This could lead to increased buying from small-cap index funds, potentially benefiting VOYA's stock price in the short term.
Inclusion in an index like the S&P SmallCap 600 can lead to increased demand for a stock from index funds, which may result in a short-term positive impact on the stock's price.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70