Street Calls of the Week
Investing.com -- Bentley Systems Inc. (NASDAQ:BSY) stock gained 2% while Western Union Co. (NYSE:WU) shares edged up 0.3% after-hours Wednesday following an announcement about index changes from S&P Dow Jones Indices.
Bentley Systems will replace Western Union in the S&P MidCap 400 index, while Western Union will move to the S&P SmallCap 600 index in place of Mr. Cooper Group Inc. (NASDAQ:COOP), effective prior to market open on Monday, October 6.
The index changes come after Rocket Companies Inc. (NYSE:RKT) completed its acquisition of Mr. Cooper Group on Tuesday, October 1. According to S&P Dow Jones Indices, Western Union’s market capitalization is now "more representative of the small-cap market space," prompting its move from the mid-cap to small-cap index.
Bentley Systems, which operates in the Information Technology sector, will join the MidCap 400 index, while Western Union, classified in the Financials sector, will transition to the SmallCap 600 index.
Index inclusions typically benefit companies as they often lead to increased visibility and potential buying from funds that track the respective indices, which may explain the positive stock movements following the announcement.
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