S&P Dow Jones Indices announced on Friday afternoon that it will add three companies to the S&P 500 SPX,
– Catalent Inc. CTLT,
, Etsy Inc. ETSY,
et Teradyne Inc TER,
Tesla Inc. TSLA,
was considered to be in line for the addition after reporting a fourth straight quarter of profitability, a requirement of the index, which many observers have cited as the reason for a massive increase in the company’s stock of electric cars in recent years weeks.
“It was a little shocking and the street assumed it was inevitable,” Ives said in an email to MarketWatch Friday afternoon. “Tesla not entering the S&P 500 club is a scraper to the head and the stock will likely be down for the implications of indexation.”
Tesla stock has added more than 31% since the second quarter earnings announcement on the afternoon of July 22, although that performance has declined this week – at the end of Monday’s trading session, the The stock had gained 56% since earnings. Stocks suffered this week following a stock split, the announcement of a plan to sell up to $ 5 billion in fresh stocks and insider selling. Overall, the electric car company’s shares have further quintupled this year, pushing its market cap to $ 380 billion at Friday’s close.
Three former members of the S&P Midcap 400 will move to the larger index instead, replacing three other companies that moved to the midcap index, H&R Block Inc. HRB,
, Coty Inc. COTY,
and Kohl’s Corp. KSS,
The changes will go into effect before negotiations start on September 21.
Tesla stock fell more than 4% after-hours trading immediately after the announcement. Catalent shares rose almost 4%, Etsy shares rose over 4%, and Teradyne shares rose almost 3%.