James Hardie climbs on S&P MidCap inclusion, to replace Roku
JHX•U.S.-listed shares of James Hardie Industries rose 4.6% before the bell after the company was set to join the S&P MidCap 400 this week, replacing Roku. An analyst estimated passive funds would need to buy 79 million shares, implying nearly 10 days of buying demand.
1. Index inclusion lifts shares
James Hardie Industries shares rose 4.6% before the bell to $29.14 ahead of the company joining the S&P MidCap 400 this week. It will replace Roku effective Wednesday, Nov. 11.
2. Expected fund buying
Stephens analyst Melissa Roberts said she expects passive funds will need to purchase 79 million James Hardie shares, implying nearly 10 days of buying demand. The Ireland-based company has about 581.65 million shares outstanding and a market capitalization of about $16 billion.
3. Housing demand weighs
The fiber cement maker last week warned of weaker second-half FY27 earnings as a challenging U.S. housing market weighs on demand. As of the last close, its U.S.-listed shares were up 34% year to date, including a 13% gain over the past month.
