Casey's General Stores replaces Hologic in S&P 500
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- Casey's General Stores will join the S&P 500 effective Thursday, filling the vacancy left by Hologic, whose buyout by Blackstone and TPG is expected to close Tuesday.
- S&P Dow Jones Indices chose the roughly $28 billion convenience-store retailer over larger eligible candidates, including Marvell Technology (~$96 billion market cap), Alnylam Pharmaceuticals, and Veeva Systems.
- Stephens analyst Melissa Roberts had written that Casey's had a "lower likelihood" of selection than other contenders ahead of the announcement.
- Casey's is being elevated from the S&P MidCap 400, while Marvell, Alnylam, and Veeva would have been pure new entrants not currently in any of the three flagship indexes that make up the S&P 1500.
- Shares moved after the news: Casey's rose about 1% in after-hours trading, while Marvell fell 2%, Alnylam dropped 2.6%, and Veeva slipped 1.6%.
- The S&P index committee has discretion beyond market cap, weighing profitability, market value, and other criteria — and can favor internal migrations within the S&P 1500 universe to reduce disruption.
Why it matters: The committee passed over a $96 billion chip maker to slot in a $28 billion convenience-store chain, prioritizing an internal migration from the MidCap 400 over a pure new entrant. Index funds must now buy CASY and sell the speculative runners-up, which is what was already visible in after-hours action as Marvell, Alnylam, and Veeva gave back gains they had accumulated on inclusion bets.
