Macy’s Inc. (NYSE: M) stock hit an all-time low in Wednesday’s session after it was announced that the company would be leaving the S&P 500. The combination of coronavirus outbreak and a struggling brick-and-mortar chain have finally caught up to this retailer.
Note this also comes after the company announced that it would be furloughing most of its 125,000 employees nationwide.
So here’s how a reshuffling of the S&P 500 will go down. United Technologies Corp. (NYSE: UTX) is spinning off Otis Worldwide Corp. (NYSE: OTIS) and Carrier Global Corp. (NYSE: CARR) and then merging with Raytheon Co. (NYSE: RTN) in transactions expected to be completed on April 3.
Ultimately, Otis and Carrier Global will be added to the S&P 500 prior to the open of trading on Friday, April 3. Otis Worldwide will replace Raytheon, and Carrier Global will replace Macy’s, both of which will be removed from the S&P 500 effective prior to the open of trading on Monday, April 6.
Also effective on April 6, American Tower Corp. (NYSE: AMT) will replace Raytheon in the S&P 100, and Macy’s will replace KLX Energy Services Holdings Inc. (NASDAQ: KLXE) in the S&P SmallCap 600. Macy’s has a market capitalization more representative of the small-cap market space. KLX Energy is no longer representative of the small-cap market space.
Macy’s stock traded down about 6% to $4.60 on Wednesday, in a 52-week range of $4.41 to $26.33. The consensus price target is $10.81.