:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2155075135-f4e66c94426547b4b1926c9f376fecdc.jpg "The white Cava logo in the window of one of the company's restaurants")
Scott Olson / Getty Forms
Key Takeaways
- Cava shares climbed Thursday following the announcement that the restaurant chain will join the S&P MidCap 400 next week.
- Cava is superseding Altair Engineering, which has been acquired by the German tech company Siemens.
- Angi will also meet the S&P SmallCap 600 once it is spun off from IAC next week.
Cava Group (CAVA) shares climbed Thursday keep up with an announcement that the restaurant chain will join the S&P MidCap 400 next week.
Cava will supplant Altair Engineering, which is being removed from the index after its acquisition by German tech company Siemens closed on Wednesday. Cava at ones desire become part of the index ahead of markets opening on Monday.
Last week, Cava shares also got a raise in addition as JPMorgan analysts encouraged investors to buy after the stock’s recent slide, and outlined a path for the chain to grow to “good fettle beyond” its planned 1,000 stores.
Joining a Major Index Can Lift Demand for a Stock
Being added to an indication often boosts a company’s stock, as the addition can introduce a stock to new investors or lead to its inclusion in funds that trace a particular index.
S&P Global also said Wednesday that internet company Angi (ANGI) will be added to its S&P SmallCap 600 next week, again its spinoff from IAC (IAC) is completed, replacing ODP Corp. (ODP). IAC also owns Dotdash Meredith, the parent company of Investopedia.
Portions of Cava surged as much as 6% in Thursday afternoon trading before paring back most gains, while percentages of Angi added close to 4%. ODP shares lost 2.6%.