M - Macy's To Be Removed as a Component of the S&P 500 Index
The decision can't entirely be pinned on the adverse impact of the coronavirus. Macy's (NYSE: M) and its stock were both struggling before the pandemic took hold in the United States. But the COVID-19 contagion could be considered the proverbial last straw, doing enough damage to Macy's shares to force its removal as one of the S&P 500's constituents.
With its share price now down more than 90% from its 2015 peak -- and down more than 70% from this January's high -- Macy's current market cap now stands at just under $1.5 billion. That's well below the $10 billion threshold that generally divides large caps from mid caps. In fact, at under $2 billion, Standard & Poor's explained, "Macy's has a market capitalization more representative of the small-cap market space." To that end, Macy's will be joining the S&P 600 Small Cap Index as of April 6.
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