Angi Set To Join S&P SmallCap 600 Index Next Week, Stock Rallies: Retail’s Upbeat

Angi, Inc. (ANGI) shares climbed in Wednesday’s after-hours trading after investors cheered the news of an index inclusion. 

Denver, Colorado-based Angi provides consumers with tools and resources to help them find local, pre-screened, and customer-rated professionals. Parent IAC, Inc. (IACI) will spin off its ownership interest in Angi in a transaction that is expected to close on April 1. 

Against the backdrop, S&P Dow Jones Indices announced that Angi will replace ODP Corp. (ODP) in the S&P SmallCap 600 Index, effective before the market opens on Wednesday, April 2.

It added that IAC will remain in the same index after the spin-off.

S&P Dow Jones customarily rebalances its flagship market-capitalization index series every quarter so that constituent companies continue to meet the inclusion criteria. 

The S&P SmallCap 600 Index includes 600 companies, representing about 3% of the U.S. market. To be added to the index, a company should have $1.1 billion to $7.5 billion in market capitalization.  

Index inclusion is positive for a company’s stock as exchange-traded funds and other index funds holding portfolios mirroring the index will add it, resulting in higher volumes and liquidity.

IAC’s board approved the planned spin-off on March 7 and declared a special dividend of Angi Class A common stock owned by IAC to its shareholders on the March 31 distribution date.

Angi’s shares began to trade on a reverse-split-adjusted basis (1-for-10) on Monday.

On Stocktwits, retail sentiment toward Angi stock remained bullish (64/100) by late Wednesday, and the message volume stayed ‘normal.’

Angi stock ended Wednesday’s session up 5.29% at $17.30.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Lightspeed Commerce Stock Slips Despite Positive Commentary At Capital Markets Day But Retail’s Impressed