Changes to the S&P MidCap 400 and SmallCap 600 indices are set to take place on November 7, 2023, as announced by S&P Dow Jones Indices, a division of S&P Global. Burlington Stores Inc. (NYSE:BURL) will replace Envestnet Inc . (NYSE:NYSE:ENV) in the MidCap 400, while Envestnet will substitute Hostess Brands Inc. (NASD:NASDAQ:TWNK) in the SmallCap 600.
The reshuffle comes as The J. M. Smucker Co., an S&P 500 entity, is on the brink of acquiring Hostess Brands through an exchange offer, subject to certain conditions. The deal's closure is expected on the same day as the index changes.
The shift of Envestnet to the SmallCap 600 is a reflection of its more accurate representation of the small-cap market space. The GICS sectors affected by these changes include Consumer Discretionary (Burlington Stores) and Information Technology (Envestnet) in MidCap 400, and Information Technology (Envestnet) and Consumer Staples (Hostess Brands) in SmallCap 600.
InvestingPro Insights
As we delve into the upcoming changes in the S&P MidCap 400 and SmallCap 600 indices, the InvestingPro data and tips provide some valuable insights.
For Burlington Stores Inc. (BURL), the company has been profitable over the last twelve months and has seen high returns on book equity, as per InvestingPro Tips. The InvestingPro data shows that Burlington has a market capitalization of $8100M and a P/E ratio of 30.81, indicating a strong financial standing. The company's revenue for the last twelve months as of Q2 2024 stands at $9087.14M, showing a growth of 3.02%.
On the other hand, Envestnet Inc. (ENV) has seen its price fall significantly over the last three months and has been trading near its 52-week low, according to InvestingPro Tips. The InvestingPro data reveals that Envestnet's market capitalization is $2040M, with a negative P/E ratio of -19.44, indicating the company's struggles in profitability. The company's revenue for the last twelve months as of Q2 2023 was $1210.71M, marking a decline of -4.13%.
For readers interested in more detailed insights, InvestingPro offers additional tips and metrics for both BURL and ENV.
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