Latest news with #S&P400
Yahoo
2 days ago
- Business
- Yahoo
Robinhood Is a ‘Prime Candidate' for S&P 500 Addition, BofA Says
(Bloomberg) -- Robinhood Markets Inc. is a 'prime candidate' to enter the S&P 500 Index in the rebalancing set to be announced Friday, a milestone that would spur passive funds to snap up shares of the online brokerage, according to Bank of America Corp. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design The stock was in focus among investors at a meeting about potential index changes for financial stocks, analysts led by Craig Siegenthaler wrote in a note. Robinhood's stock has surged as both equity and cryptocurrency markets rally, and on Tuesday, it closed at its first record high in nearly four years. The shares were 0.3% higher on Wednesday afternoon after swinging between gains and losses. Companies that win addition to the US benchmark can see a big stock boost. Crypto-exchange operator Coinbase Global Inc. notched a 34% gain in the week its addition was announced in May, even as investors digested news of a hack and regulatory scrutiny. Passive mutual funds and exchange-traded funds that track the S&P 500 are required to reshuffle their holdings to match the gauge, and the Bank of America analysts expect 'significant buying activity from passive funds' if Robinhood joins the index. 'The S&P 500 and Russell 1000 are the two major benchmarks for our large cap long-only clients,' the analysts wrote. 'When companies are added, we experience significantly higher interest from long-only portfolio managers which are essentially now forced to cover them and make a call.' Ares Management Corp., Carvana Co. and AppLovin Corp. are among other companies that the analysts flagged as possible additions, while Interactive Brokers Group Inc. could migrate from the S&P 400. Brookfield Asset Management Ltd. is likely to be added to the S&P Total Market Index in June after it won entry to the Russell 1000, with addition to the S&P 500 coming later in the year, they wrote. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P.
Yahoo
2 days ago
- Business
- Yahoo
Robinhood stock rises on S&P 500 inclusion speculation
-- Robinhood (NASDAQ:HOOD) shares climbed 3% amid market speculation that the online brokerage could be a potential new addition to the S&P 500 index. The uptick follows comments from analysts suggesting the company is a 'prime candidate' for the index's next rebalancing. The rise in Robinhood's stock came after Bank of America (BofA) analysts highlighted the brokerage's prospects in a recent meeting discussing potential changes to major indices. According to BofA's Emma Huang, the announcement from S&P, expected on Friday, June 6 at 5:15 pm, may include several adjustments to the index, such as additions, removals, migrations, and share changes. Investors showed particular interest in a set of companies, including Robinhood, which is not currently part of the S&P 400, leading analysts to anticipate significant buying activity by passive funds if included. The analyst quote provided states, "Following our meeting, we view HOOD as a prime candidate for the S&P 500 with the next rebalancing." This endorsement, alongside the mention of other companies such as LNG, FLUT, VEEV, CVNA, ARES, and APP as top candidates for additions to the index, has contributed to the positive sentiment surrounding Robinhood's stock. The potential inclusion in the S&P 500 is significant for Robinhood as it would likely result in increased demand for the stock from index funds and other investment vehicles that track the S&P 500. This would not only boost the company's visibility in the financial markets but could also provide a more stable shareholder base. Related articles Robinhood stock rises on S&P 500 inclusion speculation HSBC upgrades Brazil's Embraer on strong delivery outlook AST SpaceMobile soars on speculation of strategic tie-up with Jeff Bezos Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
3 days ago
- Business
- CNBC
These stocks could join the S&P 500 this month, Bank of America says
Fund managers are gearing up for at least one more big reshuffling before their summer vacations, with the second-quarter changes to the S & P 500 expected to be unveiled at the end of this week. Craig Siegenthaler, research analyst at Bank of America, said in a Tuesday note to clients that there are several financial services stocks that could get a boost from the upcoming rebalance. "We view [ Robinhood ] as a prime candidate for the S & P 500 with the next rebalancing. … We view [ Interactive Brokers ] as a top migration candidate from the S & P 400 due to its size, as well as the S & P 500 being underweight financials and the S & P 400 being overweight financials," Siegenthaler said. HOOD YTD mountain Robinhood's stock has been a stronger performer in 2025 but is not yet part of the S & P 500. Other candidates for potential inclusion include Ares Management , Flutter Entertainment and Cheniere Energy , the note said, with Invesco a stock that could potentially get bumped down from the large-cap 500 to the mid-cap S & P 400. Even modest changes to indexes can spark billions of dollars of trading around the rebalance date, which typically comes on the third Friday of the last month in a quarter. Passive funds must swap out their old positions for new ones, and active managers often do so as well to keep their desired distance from the index in check. The S & P 500 rebalance is particularly impactful, as the SPDR S & P 500 Trust ETF (SPY) alone has $600 billion in assets. Companies being added to the index can generally expect funds like that to scoop up huge amounts of their shares in the coming weeks. "For HOOD or ARES, which aren't a part of the S & P 400, we would expect significant buying activity from passive funds (17% gross/12% net of their floats)," Siegenthaler said. The S & P 500 is not simply a ranking of the 500 largest stocks in the U.S. There are eligibility requirements around a stock's liquidity and the underlying company's profits, for example. Timing also matters, and tech firm Okta may be an example of that this cycle following its postearnings report sell-off last week. "What was a nearly $22bn company a week ago now weighs in at $18bn. At the moment, there are six S & P 400 members ahead of it and one — US Foods — that is nipping at its heels," analyst Don Bilson of Gordon Haskett said about Okta in a note to clients on Tuesday. — CNBC's Michael Bloom contributed reporting.
Business Wire
22-05-2025
- Business
- Business Wire
Impactive Capital Comments on Clear Message Sent by WEX Inc. Shareholders That Board Change Is Needed
NEW YORK--(BUSINESS WIRE)--Impactive Capital, LP, ('Impactive' or 'we') together with its affiliates, one of the largest shareholders of WEX Inc. (NYSE: WEX) (the 'Company' or 'WEX') with an ownership interest of approximately 7.0%, today commented on the results of the Company's 2025 annual meeting of stockholders (the 'annual meeting'). Impactive previously disclosed its intention to vote against the election of three directors – Jack VanWoerkom, Melissa Smith, and James Neary – in its open letter to shareholders on May 2, 2025. Each of these three directors received high percentages of against votes at the annual meeting. Specifically: Jack VanWoerkom, Lead Independent Director, who has served on the Board for two decades, received only 57.2% support 1, a decline of 38.4 percentage points compared to 95.6% support last year, placing him in the 0.3 rd percentile 2 of all directors elected at S&P 400 companies in 2024; Melissa Smith, CEO and Chairwoman, received only 64.3% support 1, a decline of 33.4 percentage points from 97.7% last year, placing her in the 0.6 th percentile 2 of all directors elected at S&P 400 companies in 2024; James Neary, Director, who has served for nearly a decade and was initially appointed to represent Warburg Pincus, which has not held a position in WEX for three years, received only 67.0% support, a decline of 32.8 percentage points from 99.8% last year, placing him in the 0.8 th percentile 2 of directors elected at S&P 400 companies in 2024. Lauren Taylor Wolfe, Co-Founder and Managing Partner of Impactive, stated: 'WEX's shareholders sent a clear message that they no longer have confidence in the current Board. As one of WEX's largest and most committed long-term investors, we want nothing more than to see the Company succeed. Unfortunately, the gap between WEX's intrinsic value and its stock price has continued to widen and the Company has shown no indication that it possesses a viable strategy for reversing this trend. In spite of our attempts over the past four years to work constructively to address the Company's valuation gap, the Board has repeatedly dismissed our efforts to strengthen shareholder alignment by adding an Impactive representative as a director. In our letter issued earlier this month, we disclosed our intention to vote against three directors after private engagement about strategic, value enhancing ideas and shareholder alignment were dismissed. The fact that each of these individuals saw their support from shareholders decline by more than 30 percentage points – without Impactive even soliciting proxies or taking any public action beyond our letter – is a direct indicator that investors share our disillusionment with the status quo. It is a particularly notable rebuke that Ms. Smith received only 64% support, given her position as the Company's CEO and Chairwoman charged with not only overseeing WEX's strategy, but also its engagement with shareholders. Impactive's preference is to engage privately and constructively. We have a successful track record of working collaboratively with boards, management teams and reasonable advisors to agree on beneficial solutions that are in the best interests of all stakeholders. However, it has become clear that WEX is not interested in good faith engagement. That is why we intend to nominate at least four directors for election at next year's annual meeting, barring a significant reversal of the Company's underperformance or approach to engagement in the coming months.' About Impactive Impactive Capital, LP is an active investment management firm based in New York. Impactive invests in high quality, attractively valued businesses and engages collaboratively with management teams and Boards to unlock shareholder value using capital allocation, operational and returns-linked ESG tools. Investing over a longer term, multi-year time horizon allows Impactive to think and invest like owners to drive long term sustainable returns for all shareholders. 1 Support calculated as 'For' votes divided by sum of For, Against, Abstain, and Broker Non-votes. 2 Percentile calculated based on the number of election results below the director divided by 2,943 director election results at S&P 400 companies in 2024.
Business Wire
14-05-2025
- Business
- Business Wire
Independence Realty Trust Increases Quarterly Dividend by 6%
PHILADELPHIA--(BUSINESS WIRE)--Independence Realty Trust, Inc. (NYSE: IRT) ('IRT') announces that its board of directors approved a quarterly dividend of $0.17 per share of IRT common stock, which represents a 6.3% increase over the prior quarterly rate of $0.16 per share. The second quarter 2025 dividend is payable on July 18, 2025, to shareholders of record at the close of business on June 27, 2025. 'Our Board's decision to increase the quarterly dividend reflects continued confidence in our long-term strategy and the strength of our cash flow,' said Scott Schaeffer, Chairman and CEO of IRT. 'We remain committed to delivering consistent value to our shareholders.' About IRT Independence Realty Trust, Inc. (NYSE: IRT), an S&P 400 MidCap Company, is a real estate investment trust ('REIT') that owns and operates multifamily communities, across non-gateway U.S. markets. IRT's investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT's main objective is to provide attractive risk-adjusted returns to shareholders through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company's website Forward-Looking Statements This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, our earnings guidance, and the assumptions underlying such guidance, our planned use of remaining proceeds from our recent sales of common stock on a forward basis, our unsecured notes in a private placement, our expectations with respect to the two properties which we are under contract to acquire, and our expectations with respect to future acquisitions. All statements in this release that address financial and operating performance, events or developments that we expect or anticipate will occur or be achieved in the future are forward-looking statements. Our forward-looking statements are not guarantees of future performance and involve estimates, projections, forecasts and assumptions, including as to matters that are not within our control, and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, our planned use of proceeds from our recent sales of common stock on a forward basis and our unsecured notes in a private placement, inability to sell certain assets, including those assets designated as held for sale, within the time frames or at the pricing levels expected, failure to achieve expected benefits from the redeployment of proceeds from asset sales, inability or failure to achieve anticipated benefits from future acquisitions, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve rent increases and occupancy levels on account of the value add initiatives, unexpected impairments or impairments in excess of our estimates, increased regulations generally and specifically on the rental housing market, including legislation that may regulate rents and fees or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, economic conditions, including inflation and recessionary conditions and their related impacts on the real estate industry, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, the effects of natural and other disasters, unknown or unexpected liabilities, including the cost of legal proceedings, costs and disruptions as the result of a cybersecurity incident or other technology disruption, including but not limited to a third party's unauthorized access to our data or the data of our residents, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the 'Risk Factors' sections of our Annual Report on Form 10-K for the year ended December 31, 2024, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements. These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.
