Changes are coming to the S&P 500, effective after the markets close on Friday, September 30. Coty Inc. (NYSE: COTY) will be replacing Diamond Offshore Drilling Inc. (NYSE: DO) on the index. While Diamond Offshore will be replacing Polycom Inc. (NASDAQ: PLCM) in the S&P MidCap 400. The reasoning behind Diamond Offshore’s move is that the company is ranked at the bottom of the S&P 500 and has a market capitalization more representative of the mid-cap market space.

Note that Siris Capital Group acquired Polycom in a deal that was completed Wednesday.

Coty manufactures, markets and distributes beauty products. Headquartered in New York City, the company will be added to the S&P 500 GICS (Global Industry Classification Standard) Personal Products Sub-Industry index.

Diamond Offshore Drilling provides contract drilling services to the energy industry. Headquartered in Houston, the company will be added to the S&P MidCap 400 GICS Oil & Gas Drilling Sub-Industry index.

Shares of Coty were trading at $23.65 on Wednesday. The stock has a consensus analyst price target of $27.94 and a 52-week trading range of $21.48 to $31.60. So far in 2016, Coty has underperformed the broad markets, with the stock down about 7%.

Diamond Offshore shares were last seen at $16.03, with a consensus price target of $17.77 and a 52-week range of $14.18 to $25.72. Year to date, Diamond Offshore has lost about a quarter of its market cap, with the stock down 24% in this time.

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