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Investing.com -- BrightSpring Health Services Inc (NASDAQ:BTSG) stock rose 6.9% in after-hours trading Tuesday following news that the company will be added to the S&P SmallCap 600 index.
The healthcare services provider will replace Veritex Holdings Inc (NASDAQ:VBTX) in the small-cap benchmark, with the change set to take effect prior to market open on Monday, October 20, according to S&P Dow Jones Indices.
Veritex Holdings is being removed from the index as it is being acquired by S&P 500 constituent Huntington Bancshares Inc (NASDAQ:HBAN). The acquisition is expected to close soon, pending final closing conditions.
Index inclusion typically drives demand for a company’s shares as funds that track the S&P SmallCap 600 will need to purchase the stock to maintain proper index weighting. This often leads to increased trading volume and share price appreciation in the short term.
BrightSpring Health Services provides a range of healthcare and pharmacy services. The company will join the index under the Health Care sector classification, while Veritex Holdings had been classified in the Financials sector.
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