Tinder owner Match Group set to join S&P 500

S&P 500 will hit 5,000 by end of 2022: Katz

UBS managing director and senior portfolio manager Jason Katz shares his market predictions. 

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. 

TickerSecurityLastChangeChange %
MTCHMATCH GROUP, INC.159.38+11.19+7.55%
HCMHUTCHMED CHINA39.72-3.16-7.37%
BROBROWN & BROWN, INC.58.29-0.66-1.12%

They will replace private label drugmaker Perrigo Co., insurer Unum Group and oil and gas equipment provider NOV Inc.

TickerSecurityLastChangeChange %
PRGOPERRIGO CO. PLC41.79-0.06-0.14%
UNMUNUM GROUP26.47+0.06+0.23%
NOVNOV, INC.13.10+0.16+1.24%

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.

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