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Key Takeaways
- Cava shares climbed Thursday following the announcement that the restaurant chain will join the S&P MidCap 400 next week.
- Cava replaces Altair Engineering after it was acquired by Siemens, a German tech company.
- Angi will also join the S&P SmallCap 600 once it is spun off from IAC next week.
Cava Group (CAVA) shares climbed Thursday following an announcement that the restaurant chain will join the S&P MidCap 400 next week.
Cava replaces Altair Engineering after its acquisition closed by German tech company Siemens on Wednesday. Cava will be included in the index at the opening of markets on Monday.
Last week, Cava’s shares were also boosted by JPMorgan analyst’s encouragement to investors to buy the stock after its recent slide. They also outlined a plan for the chain to expand “well beyond” the 1,000 stores planned.
Joining Major Indexes Can Increase Demand for Stocks
Adding a stock to an index can often boost a company’s share price. The addition can introduce it to new investors, or lead to the inclusion of a stock in funds that track specific indexes.
S&P Global also said Wednesday that internet company Angi (ANGI) will be added to its S&P SmallCap 600 next week, once its spinoff from IAC (IAC) is completed, replacing ODP Corp. (ODP). IAC owns Dotdash Meredith which is the parent company of Investopedia.
Shares in Cava soared as high as 6% during Thursday’s trading, before reversing the majority of gains. Shares in Angi gained almost 4%. ODP shares lost 2.6%.
