SanDisk stock surges after S&P 500 inclusion announcement

Investing.com -- SanDisk Corporation (NASDAQ: SNDK) stock jumped 9% in after-hours trading Monday, extending its earlier 13.3% regular session gain, after S&P Dow Jones Indices announced the flash memory maker will be added to the S&P 500 index.

The company will replace Interpublic Group of Companies Inc (NYSE: IPG), which is being acquired by Omnicom Group Inc (NYSE: OMC). The index changes will take effect prior to market open on Friday, November 28.

SanDisk’s strong performance follows its November 6 earnings report where the company topped both earnings and sales estimates for the quarter. The stock had already seen significant momentum during Monday’s regular trading session after Morgan Stanley analyst Joseph Moore raised his price target on SanDisk to $273.00 from $263.00 while maintaining an Overweight rating.

In the same announcement, S&P Dow Jones Indices revealed that PTC Therapeutics Inc (NASDAQ: PTCT) will replace SanDisk in the S&P SmallCap 600, with PTC shares rising 4% after hours. Other companies affected by index changes include Upwork Inc (NASDAQ: UPWK), which gained 5.7% after being named to replace Premier Inc (NASDAQ: PINC) in the SmallCap 600, and First Interstate BancSystem Inc (NASDAQ: FIBK), which rose 4.8% on news it will replace Hanesbrands Inc (NYSE: HBI).

Premier is being acquired by Patient Square Capital in a deal expected to close November 25, while Gildan Activewear Inc . (NYSE: GIL) is acquiring Hanesbrands with an anticipated completion date of December 1.

You May Also Be Interested In

• Are we witnessing a fundamental or speculative rally in the S&P 500?
• Araghchi Says No Tangible Progress Made In US Talks - Tasnim
• Airbnb launches earnings protection insurance for U.S. hosts