LNC - This Insurer Just Got Booted From the S&P 500: Here's Why
2023-09-22 05:31:00 ET
Every quarter, the S&P Dow Jones Indices organization (a joint venture between S&P Global and CME Group ) initiates actions to rebalance the S&P 500 index. The reshuffling removes companies that don't meet the index's requirements and replaces them with newcomers that do, thus keeping the index fresh and in compliance with its mandate. This month, Blackstone (NYSE: BX) was added to the index , while fellow financial stock Lincoln National (NYSE: LNC) got the boot.
Lincoln National has faced challenges over the past few years, which were compounded over the last several quarters. Here's why the company is no longer in the S&P 500.
Companies are removed from the S&P 500 index for several reasons. Generally, businesses that are struggling financially or whose market capitalization falls below a certain threshold are on the short list of candidates to be removed. Companies must have a market cap of at least $14.5 billion to get added to the benchmark index. Lincoln Financial's market cap has fallen well below that threshold and currently stands at $4.37 billion.
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This Insurer Just Got Booted From the S&P 500: Here's Why