Peabody Energy To Replace e.l.f. Beauty In S&P SmallCap 600, Effective Prior To Opening Of Trading On January 23
Portfolio Pulse from Benzinga Newsdesk
Peabody Energy (BTU) will replace e.l.f. Beauty (ELF) in the S&P SmallCap 600 index before the market opens on January 23. This change may affect the stock prices of both companies due to index fund rebalancing.
January 17, 2024 | 10:25 pm
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POSITIVE IMPACT
Peabody Energy (BTU) is set to join the S&P SmallCap 600, which could lead to increased demand for shares from index funds and potentially boost the stock price in the short term.
Inclusion in a major index like the S&P SmallCap 600 often leads to increased demand for the stock as index funds and ETFs that track the index are required to purchase shares. This can result in a short-term positive impact on the stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
e.l.f. Beauty (ELF) will be removed from the S&P SmallCap 600, which may result in selling pressure from index funds, potentially leading to a short-term decline in the stock price.
Being removed from an index like the S&P SmallCap 600 typically leads to selling pressure as index funds and ETFs that replicate the index composition sell their holdings. This can have a negative short-term impact on the stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80