Space and defense co Karman climbs on S&P SmallCap addition
KRMN•Karman to join S&P SmallCap 600
Shares of space and defense systems maker Karman Holdings rose 4.3% to $47.82 before the bell on Wednesday as it is set to join the S&P SmallCap 600 index.
KRMN will replace BrightSpring Health Services in the index effective Friday, July 17, S&P Dow Jones Indices announced late Tuesday.
Index reshuffle and expected passive buying
BrightSpring is moving to the S&P MidCap 400 and will replace Chart Industries, which is being acquired by oilfield services firm Baker Hughes in a $13.6 billion deal announced a year ago.
BrightSpring shares were down 0.8% in thin premarket trading.
Stephens analyst Melissa Roberts said in a note she expects passive funds will need to buy 12.3 million KRMN shares, implying about four days of purchasing demand.
Huntington Beach, California-based KRMN has about 132.5 million shares outstanding for a $6 billion market cap. At Tuesday's close, the stock was down .
