- Sterling Infrastructure (STRL) to join the S&P SmallCap 600 index.
- Patterson Companies (PDCO, Financial) to be removed following its acquisition by Patient Square Capital.
- The index change will be effective before the market opens on April 17, 2025.
Patterson Companies (PDCO) will be removed from the S&P SmallCap 600 index before the market opens on April 17, 2025, due to its acquisition by Patient Square Capital. This transition signals the near completion of the acquisition, subject to final closing conditions.
Sterling Infrastructure (STRL) is set to replace Patterson Companies in the S&P SmallCap 600. The inclusion of Sterling Infrastructure reflects the indices' regular rebalancing efforts to accommodate company acquisitions and other market dynamics.
For investors tracking the S&P SmallCap 600, this change necessitates portfolio adjustments. Index funds are required to sell their positions in PDCO and purchase shares of STRL to align with the updated index composition. This rebalancing often leads to temporary increases in trading volumes for the involved securities as the effective date approaches.
As Patterson Companies transitions from public to private ownership under Patient Square Capital, PDCO shareholders are expected to receive the agreed-upon compensation, and the company's stock will no longer be available on the public market. The removal from the index might impact PDCO’s stock liquidity and could lead to a loss of index-based institutional investments.
S&P Dow Jones Indices, a division of S&P Global, oversees the index changes. They continue to be a vital resource for index-based concepts, data, and financial market indicators worldwide.
