The end of the month is jam packed with spinoffs which means that the major indices will be making some changes as well. In this case, two S&P 500 companies, Agilent (A) and Kimberly-Clark (KMB), are spinning off units which will join the S&P Midcap 400:
- Keysight Technologies Inc. (NYSE:KEYSwi) will replace Universal Corp. (NYSE:UVV) in the
S&P MidCap 400, and Universal will replace Rubicon Technology Inc. (NASD:RBCN) in the
S&P SmallCap 600. S&P 500 constituent Agilent Technologies Inc. (NYSE:A) is spinning off
Keysight Technologies in a transaction expected to be completed on that date. Agilent will
remain in the S&P 500 following the distribution. Universal’s market capitalization is
approximately $1.0 billion, making it more representative of the small cap market space.
Rubicon Technology is ranked at the bottom of the S&P SmallCap 600.- Halyard Health Inc. (NYSE:HYHwi) will replace ADTRAN Inc. (NASD:ADTN) in the S&P
MidCap 400, and ADTRAN will replace Forest Oil Corp. (NYSE:FST) in the S&P SmallCap
600. S&P 500 constituent Kimberly-Clark Corp. (NYSE:KMB) is spinning off Halyard Health
in a transaction expected to be completed on that date. Kimberly-Clark will remain in the
S&P 500 following the distribution. ADTRAN’s market capitalization is below $1.2 billion,
making it more representative of the small cap market space. Forest Oil is ranked near the
bottom of the S&P SmallCap 600.
For a quick reminder, Agilent is spinning off its EMS business and Agilent shareholders will receive 2 shares of Keysight for every one share of Agilent owned. Kimberly-Clark is unloading its health care business and shareholders will receive 1 share of Halyard Health for every 8 shares of KMB owned. Both parent companies will remain in the S&P 500 so it’s worth watching for some forced selling as a possible entry point.
Disclosure: Author holds no position in any stock mentioned.