Okta rises as cybersecurity company poised to replace Tylenol maker Kenvue in S&P 500

1. S&P 500 inclusion

Okta is moving from the S&P MidCap 400 to the S&P 500, replacing Kenvue effective Wednesday, Nov. 4, S&P Dow Jones Indices announced Friday. Kenvue is being acquired by Kimberly-Clark in a roughly $40 billion deal expected to close soon.

2. Expected fund buying

Passive funds will need to purchase about 9.5 million Okta shares, implying three days of buying demand, Stephens analyst Melissa Roberts outlined in a note to clients. Okta had about 174.8 million shares outstanding and a market capitalization of about $36.4 billion. Its shares had surged 140% year to date through Friday.

3. Other index changes

Glaukos is moving from the S&P SmallCap 600 to the S&P MidCap 400 to replace Okta, while McGrath RentCorp will enter the S&P SmallCap 600 on Wednesday.

1. S&P 500 inclusion

2. Expected fund buying

3. Other index changes

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