Investing

American Airlines Replaces Allergan in S&P 500

American Airlines Group Inc. (NASDAQ: AAL) will be the newest addition to the S&P 500, taking the place of Allergan Inc. (NYSE: AGN). The change will occur after the close of trading Friday, March 20, and it will have a couple implications for the index weighting.

Allergan will be removed from the index because it is being acquired by Actavis PLC (NYSE: ACT). The transaction is valued at $66 billion or $219 per share, the exchange will happen in cash and Actavis shares. It is expected to be completed this week, after receiving approval from the European Commission.

The two other major airlines currently in the index are Delta Air Lines Inc. (NYSE: DAL) and Southwest Airlines Co. (NYSE: LUV).

Ultimately what this will mean that American Airlines’ market cap of $35 billion will move into the Transportation sector of the S&P, while Allergan’s market cap of $72 billion will move out of the Healthcare sector of the index.

Shares of American Airlines were up 5.4% at $52.93 shortly after Tuesday’s opening bell. The stock has a consensus analyst price target of $68.97 and a 52-week trading range of $28.10 to $56.20.

Shares of Allergan closed Monday up 1.2% at $240.22, in a 52-week trading range of $115.94 to $241.78. The consensus analyst price target is $219.33.

ALSO READ: Should Investors Buy These 4 ‘Bad News’ Stocks for Big Gains?

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.