Ingram Micro jumps ahead of S&P SmallCap inclusion
INGM•Ingram Micro shares rose 6.8% to $29.89 after the company was set to join the S&P SmallCap 600 on Nov. 17. An analyst estimated passive funds would need to buy about 8.6 million shares, representing nearly four days of buying demand.
1. Index inclusion set
Ingram Micro is set to replace Pacira BioSciences in the S&P SmallCap 600, effective Tuesday, Nov. 17, S&P Dow Jones Indices announced late Wednesday. Ingram Micro shares rose 6.8% to $29.89 on Thursday, their highest level since July 30, and were on track for a fifth consecutive session of gains.
2. Estimated fund demand
Stephens analyst Melissa Roberts said she expects passive funds will need to purchase about 8.6 million Ingram Micro shares, implying nearly four days of buying demand. The company had about 229.1 million shares outstanding and a $6.4 billion market capitalization as of the previous close.
3. Recent share performance
Ingram Micro shares have rallied 22% over the past week and are up about 40% year to date. Seven of 15 analysts rate the stock “strong buy” or “buy,” while eight rate it “hold”; the median price target is $32.50. Last week, majority shareholder Platinum Equity reduced its stake.
