BUZZ-First Interstate Bancsystem rises ahead of S&P SmallCap 600 inclusion
First Interstate BancSystem's shares rose 4% to $33 premarket after it was announced that the company will join the S&P SmallCap 600 index on December 2. Inclusion in the index typically boosts stock prices due to increased demand from passive funds and ETFs. Brokerage Stephens noted that passive funds will need to purchase 12.5 million shares. Four out of eight brokerages rate the stock as a 'buy' or higher, with a median price target of $36. As of the last close, the stock was down 2.3% year-to-date.
Regional lender First Interstate BancSystem’s (FIBK.O) shares rise 4% to $33 premarket FIBK will join the S&P SmallCap 600 index prior to market open on December 2, S&P Dow Jones Indices announced late Monday
S&P SmallCap 600 measures the small-cap segment of the US equity market
Index inclusion typically boosts a company’s stock price as passive funds and exchange-traded funds tracking the benchmark are forced to buy in, creating a demand surge
Passive funds will need to purchase 12.5 million FIBK shares, which implies about 14 days of buying demand - brokerage Stephens
Four of eight brokerages rate the stock “buy” or higher, three “hold” and one “sell”; median PT $36 - data compiled by LSEG
As of last close, FIBK stock down 2.3% YTD
