Patterson Companies To Join S&P SmallCap 600, Replacing Chico's FAS, Effective Prior To Opening Of Trading On January 5
Portfolio Pulse from Benzinga Newsdesk
Patterson Companies (PDCO) is set to join the S&P SmallCap 600, replacing Chico's FAS (CHS), effective prior to the market opening on January 5. This change is due to Sycamore Partners acquiring Chico's FAS, with the transaction expected to be completed around that date, subject to final conditions.
January 02, 2024 | 10:24 pm
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POSITIVE IMPACT
Patterson Companies is joining the S&P SmallCap 600, which may lead to increased investor interest and potential buying pressure from funds that track the index.
Inclusion in a major index like the S&P SmallCap 600 often results in increased demand for the stock as index funds and ETFs that track the index are required to purchase shares. This can lead to a short-term increase in the stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Chico's FAS is being acquired by Sycamore Partners and will be removed from the S&P SmallCap 600, which could result in selling pressure as index funds adjust their holdings.
The removal of Chico's FAS from the S&P SmallCap 600 due to the acquisition by Sycamore Partners may lead to selling pressure from index funds that need to sell CHS shares to realign with the index.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80