Interactive Brokers, which trades on the New York Stock Exchange, will join the S&P 500 on Thursday. Photo by Angelina Katsanis/UPI | License Photo
Standard and Poor’s Dow Jones Indices said Monday that Interactive Brokers will join the S&P 500 Index, replacing Wagreens’ parent company, when trading opens Thursday on the New York Stock Exchange and Nasdaq.
The global brokerage company, which provides an integrated electronic trading platform, will replace Walgreens Boots Alliance because it will be taken private in a planned deal with Sycamore Partners, S&P Global said.
Interactive Brokers, based in Greenwich, Conn., with 3,085 employees in the United States and offices worldwide, has been in the S&P MidCap 400.
Walgreens Boot Alliance, based in Deerfield, Ill., was formed in 2014 with the merger of Walgreens, the second-largest drugstore chain in the United States behind CVS, and Swiss-based health and beauty retailer Alliance Boots.
The announcement was made after trading ended at 4 p.m. In after-hours trading, Interactive Brokers shares climbed 5% on Nasdaq. The stock closed Monday at $62.76, a rise of 42.1% from $44.39 at the start of the year. The record was $67.63 on Aug. 12.
The company, which began brokerage operations in 1993 and started trading in 2007 at $8.25, has a market cap of $106.681 billion. The company reported $1.48 billion in second-quarter revenue and net income of $224 million.
Companies need a minimum market capitalization of $20.5 billion to join the S&P 500.
Some investors had been expecting Robinhood, the digital brokerage, to join the index. Shares on the company declined at 5:15 p.m. EDT to $106.83 after reaching as high as $109.74 during the day.
Since the start of the year, Robinhood shares have risen 189.69% year to date with a market cap of $96 billion.
The S&P 500 closed up 27.59 to 6,439.32, just below the record 6,468.54 on Aug. 14. The index is up 9.48% year to date.
