Stocks of Toast Inc. (NYSE:TOST), IES Holdings Inc. (NASDAQ:IESC) and National Health Investors Inc. (NYSE:NHI) showed premarket strength on Wednesday, with each name rising following an announcement by S&P Dow Jones Indices that reshuffled constituents in its midcap and smallcap indexes.
Index additions and effective dates
Toast will be added to the S&P MidCap 400, taking the place of TopBuild Corp. (NYSE:BLD), with the change effective prior to the opening of trading on Wednesday, July 1. The announcement notes that QXO Inc. (NYSE:QXO) is acquiring TopBuild in a transaction expected to close soon, subject to final closing conditions.
IES Holdings is also slated for inclusion in the S&P MidCap 400, replacing Janus Henderson Group plc. (NYSE:JHG). That change is scheduled to take effect prior to the opening of trading on Wednesday, July 1. The filing states that Trian Fund Management LP and General Catalyst Group Management are acquiring Janus Henderson Group in a deal expected to close soon, pending final closing conditions.
On the small-cap side, National Health Investors will enter the S&P SmallCap 600, replacing Apollo Commercial Real Estate Finance Inc. (NYSE:ARI) effective prior to the opening of trading on Tuesday, June 30. The committee said Apollo Commercial Real Estate Finance has announced ongoing liquidation activities and is no longer appropriate for the S&P SmallCap 600.
Additional S&P adjustments
S&P Dow Jones Indices also confirmed that Honeywell Aerospace Inc. (NASDAQ:HONA) will be added to both the S&P 500 and the S&P 100 on Monday, June 29. Honeywell Aerospace will replace Conagra Brands Inc. (NYSE:CAG) in the S&P 500, and Conagra Brands will move into the S&P SmallCap 600 to replace Grid Dynamics Holdings Inc. (NASDAQ:GDYN) - with the Conagra-to-SmallCap change effective prior to the opening of trading on Tuesday, June 30.
Market implications
Inclusion in S&P indexes typically results in incremental buying pressure from index funds and exchange-traded funds that track those benchmarks, which can affect trading volumes and short-term demand for the securities being added.