Match Group, Ceridian HCM Holding, and Brown & Brown Join S&P 500
Today I’m telling you about several newcomers of the elite club S&P 500: Match Group, Ceridian HCM Holding, and Brown & Brown. These companies have recently joined in, finding themselves on the list alongside such huge corporations as Apple, Alphabet, Amazon, Microsoft, or Facebook.
Let’s see who else was regarded as a candidate, and which companies left the index. And, as usual, a fresh tech analysis by Maksim Artyomov is there for you.
Match Group, Ceridian HCM Holding, and Brown & Brown are in S&P 500
On September 3rd, S&P Dow Jones Indices issued a press release announcing a change in the list of companies on the S&P 500 index list. We found out that from a large number of candidates, Match Group, Ceridian HCM Holding, and Brown & Brown had been chosen.
The Match Group IT corporation owning Tinder, a popular dating platform, will replace will Perrigo Company, a pharmaceutical business. Ceridian HCM Holding, a software developer, and Brown & Brown, an insurance company, will stand in the place of Unum Group and NOV. The former also represents the sphere of insurance and the latter supplies drilling equipment.
The businesses named above that were excluded from the S&P 500 will be added to the medium capitalization index S&P MidCap 400. The changes will come in force on Monday, September 20th, before the trading session opens.
In a recent publication, among candidates for the index, Bloomberg named a beverage company Keurig Dr Pepper, a digital company Epam Systems, a marketing enterprise CoStar Group, and a video game and accessory retailer GameStop.
How did the shares of the companies react?
On September 7th, the stock price of Match Group (NASDAQ: MTCH) closed with an increase by 7.54%, reaching $159.36. The high reached by the price amounted to $162.7. Looking ahead, these quotations reacted most prominently to the recent news.
The shares of Ceridian HCM Holding (NYSE: CDAY) on Tuesday rose by only 0.13% to $116.11. One more company that reacted by growth to the changes was Nov (NYSE: NOV), removed from the index: its quotations rose by 0.93% to $13.07.
The shares of the remaining characters of the story fell: Brown & Brown (NYSE: BRO) – by 1.37% to $58.13; Perrigo Company (NYSE: PRGO) – by 0.6% to $41.6, and Unum (NYSE: UNM) – by 0.64% to $26.24.
Tech analysis of Match Group, Ceridian HCM Holding, and Brown & Brown by Maksim Artyomov
Match Group shares opened the last trading session with a gap, provoked by positive news. Breaking through the 200-days Moving Average, the quotations are nearing the resistance level of $165.
Judging by the gap on the chart, the quotations are likely to correct in the nearest future. Then it might renew the all-time high and reach $174.
Ceridian HCM Holding
With all the good news, the shares of the company are growing. They have renewed the high and are testing $116. In the nearest future, with the growth being so speedy, I expect a minor correction, followed by the continuation of the uptrend. The growth is supported by the 200-days MA that also demonstrates an ascending impulse. The aim of growth is $125.
Brown & Brown
In the case of this insurance sphere representative, the latest news made its quotations renew the highs. As it often happens, after such growth, the quotations are forming a correctional wave. The pullback might bring the quotations to $56; after a test of the support level, they might bounce off it and go on growing. Growth is hinted on by the 200-days MA that continues growing.
We got to know that in the course of the nearest quarterly rebalancing, Match Group, Ceridian HCM Holding, and Brown & Brown joined the S&P 500 index. They will replace Perrigo Company, Now, and Unum. The most prominent reaction was demonstrated by the shares of Tinder owners.
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