Grid Dynamics Holdings Set to Join S&P SmallCap 600

Rhea-AI Summary

Grid Dynamics Holdings (NASDAQ: GDYN) is set to join the S&P SmallCap 600 index, replacing Revelyst (NYSE: GEAR) effective prior to market opening on January 2, 2025. The change comes as Strategic Value Partners is acquiring Revelyst, with the deal expected to close soon pending final conditions. Grid Dynamics will be classified under the Information Technology sector in the index, while Revelyst, currently listed under Consumer Discretionary, will be removed.

Positive

• Inclusion in S&P SmallCap 600 index, which typically increases stock visibility and trading volume
• Potential for increased institutional investment due to index fund tracking

Negative

• None.

Insights

Market Index Expert

The addition of Grid Dynamics to the S&P SmallCap 600 represents a significant milestone for the company. Inclusion in this prestigious index typically leads to increased visibility and trading volume, as numerous index funds and ETFs tracking the S&P SmallCap 600 will need to add GDYN to their portfolios. Historical data suggests that stocks added to S&P indices experience an average price increase of 3-5% in the short term due to forced buying from passive funds. With a market cap of $1.73 billion, Grid Dynamics meets the size requirements for the SmallCap 600, which typically includes companies with market capitalizations between $850 million and $3.6 billion. This index inclusion validates the company's market position and could enhance its institutional ownership base, potentially improving long-term stock liquidity and stability.

Investment Strategist

This index inclusion triggers a predictable technical trading opportunity due to the mechanics of index fund rebalancing. Approximately $65 billion in assets track the S&P SmallCap 600, meaning index funds will need to purchase roughly 2.2% of GDYN's float based on its relative index weighting. For retail investors, it's important to understand that while index inclusion doesn't change fundamental business operations, it creates reliable institutional demand that typically supports share prices. The replacement of Revelyst (GEAR) due to acquisition also highlights the dynamic nature of index composition and how corporate actions create opportunities for emerging companies like Grid Dynamics to gain broader market exposure.

NEW YORK, Dec. 26, 2024 /PRNewswire/ -- Grid Dynamics Holdings Inc. (NASD: GDYN) will replace Revelyst Inc. (NYSE: GEAR) in the S&P SmallCap 600 effective prior to the opening of trading on Thursday, January 2. Strategic Value Partners is acquiring Revelyst in a deal expected to close soon pending final conditions.

Following is a summary of the change that will take place prior to the open of trading on the effective date:

Effective Date	Index Name	Action	Company Name	Ticker	GICS Sector
Jan 2, 2025	S&P SmallCap 600	Addition	Grid Dynamics Holdings	GDYN	Information Technology
Jan 2, 2025	S&P SmallCap 600	Deletion	Revelyst	GEAR	Consumer Discretionary

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View original content:https://www.prnewswire.com/news-releases/grid-dynamics-holdings-set-to-join-sp-smallcap-600-302339444.html

SOURCE S&P Dow Jones Indices

FAQ

When will Grid Dynamics Holdings (GDYN) join the S&P SmallCap 600 index?

Grid Dynamics Holdings (GDYN) will join the S&P SmallCap 600 index prior to the opening of trading on Thursday, January 2, 2025.

Which company is GDYN replacing in the S&P SmallCap 600?

Grid Dynamics Holdings (GDYN) is replacing Revelyst Inc. (NYSE: GEAR) in the S&P SmallCap 600 index.

Why is Revelyst (GEAR) being removed from the S&P SmallCap 600?

Revelyst is being removed because Strategic Value Partners is acquiring the company, with the deal expected to close soon pending final conditions.

What sector will GDYN be classified under in the S&P SmallCap 600?

Grid Dynamics Holdings (GDYN) will be classified under the Information Technology sector in the S&P SmallCap 600 index.