S&P Index Change for West Pharmaceutical Services (WST, UNH, SIE)

February 26, 2008 by Douglas A. McIntyre

We do not cover every single index change, but we do cover the ones where it looks like it will impact individual stocks.  Standard & Poor’s made an index change announcement this evening and noted that it was adding  West Pharmaceutical Services Inc. (NYSE: WST) to the S&P SmallCap 600

.  The change will take place after the close of trading on Thursday, February 28, 2008. 

The reason for the change is because Sierra Health Services Inc. (NYSE: SIE) was removed from the S&P SmallCap 600 after today’s close of trading due to its completed acquisition by UnitedHealth Group Inc. (NYSE: UNH).

We at 247WallSt.com prefer index additions such as this one.  The reason we prefer “new member adds” like this is because fund managers and investment managers that track the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 Index do not yet own shares of the stock.  When these get upgraded from one index to another it often creates close to a net-zero effect or at least a more muted effect. 

West Pharma shares closed down 0.3% at $41.70 today, but shares are up 1.7% at $42.40 for its limited after-hours trading and the “bid/ask indications” are both higher than that now.  Its 52-week trading range is $35.20 to $54.83.  Shares are up over 10% since it released earnings last week. 

Jon C. Ogg
February 26, 2008