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Key Takeaways
- UiPath is set to join the S&P MidCap 400 index on Friday, replacing Synovus Financial.
- S&P Dow Jones Indices also announced changes to the index slated for early January.
Shares of UiPath rose Wednesday on news that the business software company will join the S&P MidCap 400 Index.
S&P Dow Jones Indices said UiPath (PATH) would become part of the index prior to the opening of trading on Friday. It will replace Synovus Financial (SYN), which is being acquired by Pinnacle Financial Partners (PNFP) in a deal expected to close soon.
Why This Matters to Investors
A stock’s inclusion in the S&P 500 or other index doesn’t guarantee better days ahead, but it can be seen as a bullish signal since it can mean exposure to a new set of investors and possible purchases by funds who track those indexes.
S&P Dow Jones also said that Versant Media Group (VSNTV), a spinoff of media giant Comcast (CMCSA) would replace Brandywine Realty Trust (BDN) in the S&P SmallCap 600 Index ahead of the open on Jan. 6. The spinoff is anticipated to be completed a day earlier.
Comcast is set to remain in the S&P 500 Index. A number of updates to the makeup of the S&P 500 have recently been announced.
Inclusion in an index can be beneficial to a stock, because it becomes exposed to more potential investors and allows it to be included in funds that track those indices.
UiPath shares were up some 5% in recent trading. They have added about 30% of their value this year.
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