What to Expect from Carvana (and CRH) between Now and the S&P 500 Inclusion Date

What happens tomorrow and forward: Nearly a decade of precedent index constituent changes

Carvana closed the Friday afterhours trading session +10% with CRH +7%, both on the back of news that they will join the S&P 500 with the December 22nd quarterly rebalance date.

Are these moves appropriate? Where should investors and traders expect the stocks to close the day on Monday and on December 22nd?

This post provides you with nearly a decade of history across 47 precedent index changes, including the following for each:

• The next day percentage reaction following the announcement,

• The second day percentage reaction following the announcement,

• The cumulative reaction from announcement to rebalance date,

• The market cap at announcement,

• The 30-day return into the announcement (for analyzing front-running),

• Free float data, and

• Short interest data.

We also provide our summary of what we view are the influencing factors determining the stock move.

First, the summary data (also available in a downloadable Excel file at the base of this post):