CDW Corp. (NASDAQ: CDW) shares jumped on Wednesday after the firm announced that it would be joining the S&P 500. The stock will take the place of Total System Services Inc. (NYSE: TSS) in the index.
CDW provides integrated information technology solutions to business, government, education and health care customers. Headquartered in Lincolnshire, Illinois, the company will be added to the S&P 500 GICS (Global Industry Classification Standard) Technology Distributors index.
S&P 500 constituent Global Payments Inc. (NYSE: GPN) is acquiring Total System Services in a transaction expected to be completed after the market closes today.
The switch will take place prior to the opening of trading on Monday, September 23.
Excluding Wednesday’s move, CDW had outperformed the broad markets, with its stock up about 40% year to date. In the past 52 weeks, the stock was up closer to 26%.
Shares of CDW traded up about 7% at $121.86 Wednesday morning, in a 52-week range of $74.32 to $122.20. The consensus price target is $126.38.
Total System Services was down 1% at $133.27 per share. The 52-week range is $75.58 to $142.30, and the consensus analyst target is $130.79.