Smithfield Foods Stock Rises with the addition of Russell 1000 Index

Key Takeaways

• Smithfield Foods shares rose on Monday after the announcement that the pork producer was added to the Russell 1000 Index.
• The change went into effect after the bell Friday, as Smithfield's January IPO gave it a large enough market capitalization to be included.
• The meatpacker is scheduled to report its earnings for the first quarter since its IPO on Tuesday.

Smithfield Foods stock rose on Monday after the pork manufacturer announced that it has been added to Russell 1000 Index.

Smithfield officially joined index after the bell on Friday as part of its quarter-addition of eligible Recent Initial Public Offerings (IPOs). Smithfield went public again in January after being taken private by China’s WH Group in 2013

The Russell 1000 Index is a part of the Russell 3000 Index and tracks the 1,000 largest companies in the U.S. market.

"Being part of the Russell 1000 will help increase our visibility among institutional investors and help solidify our position as a leader in the consumer staples sector," Smithfield CEO Shane Smith said in a statement.

The pork producer will present its first quarterly report since becoming public again before the opening of the market on Tuesday. In a filing with the Securities and Exchange Commission ahead of the January IPO, the company indicated that it expected a net profit of $195 to $223 millions on sales between $3.87 billion and $3.95 billion during the three months ending Dec. 29, compared to a loss of $131 on $4.00 billion sales a year ago.

Smithfield shares were up over 3% on the first day of trading, just a little bit above where they finished their previous day.