Investing.com-- Air conditioning maker Lennox International Inc (NYSE:LII) will join the S&P 500 from next week, S&P Dow Jones Indices said on Wednesday, sending its shares higher in aftermarket trade.
Lennox will replace biotechnology firm Catalent (NYSE:CTLT) after Novo Holdings completed its acquisition of the firm this week. The move will be effective from December 23.
Lennox shares rose about 3% after the announcement. The stock is currently part of the S&P Midcap 400, and will be replaced in the index by financial software maker Bill Com Holdings Inc (NYSE:BILL).
Bill surged over 6% in aftermarket trade following the announcement.
Catalent’s inclusion in the S&P 500 is expected to attract more capital flows into the stock, especially from exchange-traded funds as they adjust their holdings to reflect the change.
Lennox is trading up nearly 45% so far in 2024, compared to a 23.8% rise in the S&P 500.
Inclusion in the S&P 500 is based on several key criteria, including having a market capital of at least $18 billion and having positive earnings for at least its most recent quarter.