Tinder owner Match Group set to join S&P 500
Shares rallied as much as 9.76%
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Match Group Inc. will become the newest member of the S&P 500 index, according to S&P Dow Jones Indices.
Shares of the Dallas-based Match Group, which owns dating services including Tinder, Match.com, Hinge and OK Cupid, climbed by as much as 9.76% to $162.65 apiece before paring their gains.
Other companies set to join the benchmark index include software company Ceridian HCM Holding Inc. and insurer Brown & Brown Inc.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MTCH | MATCH GROUP INC. | 31.26 | +0.52 | +1.69% |
| HCM | HUTCHMED CHINA | 16.85 | -0.19 | -1.12% |
| BRO | BROWN & BROWN INC. | 109.53 | -2.38 | -2.13% |
They will replace private label drugmaker Perrigo Co., insurer Unum Group and oil and gas equipment provider NOV Inc.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PRGO | PERRIGO CO. PLC | 26.94 | +0.13 | +0.48% |
| UNM | UNUM GROUP | 72.26 | +1.23 | +1.73% |
| NOV | NOV INC. | 16.21 | -0.03 | -0.18% |
The changes to the index will take place before the opening bell on Sept. 20.
Companies that are being added to the S&P 500 typically see their stock price spike because funds that track the index must buy shares in order to rebalance their holdings.
S&P Dow Jones Indices makes quarterly changes to the index.
In order to be eligible to be included in the S&P 500 index a company must be U.S.-based, have a market capitalization of at least $11.8 billion, be highly liquid, have a public float of at least 10% and its most recent quarter’s earnings and the sum of its trailing four consecutive quarters’ earnings must be positive.
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The last major addition to the index was Tesla Inc. when the electric-car maker was added in December 2020. Tesla shares gained 22% in the three days following the announcement of their inclusion, but slid 6.49% in their debut.