T-Mobile US Inc. (NASDAQ: TMUS) shares jumped on Wednesday after the announcement that the company would be joining the S&P 500 later this month. T-Mobile will be taking the place of Red Hat, which IBM has acquired.
The switch will be effective prior to the open of trading on Monday. July 15.
T-Mobile provides mobile communications services and is headquartered in Bellevue, Washington. The company will be added to the S&P 500 GICS (Global Industry Classification Standard) Wireless Telecommunication Services Sub-Industry index as well.
It’s worth pointing out that the deal to combine the third and fourth largest wireless companies in the United States appears to be close to approval by the federal government. Yet, the ranks of states attorneys general against the deal has grown. T-Mobile has worked on the Sprint Corp. (NYSE: S) deal for over a year. T-Mobile management will take the helm if the merger is completed.
Excluding Wednesday’s move, T-Mobile has more or less performed in line with the broad markets, with its stock up about 18% year to date. In the past 52 weeks, the stock is up closer to 23%.
Shares of T-Mobile were up about 3.6% at $77.87 Wednesday morning, in a 52-week range of $57.89 to $80.93. The consensus price target is $83.00.