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- Two Stocks to Benefit in September: Blackstone
Two Stocks to Benefit in September: Blackstone
There are more a lot of investors and fund managers who scrupulously track the S&P 500 structure and try to repeat it in general or even to copy its whole composition. Therefore, news on the latest additions to the S&P 500 list most often contribute to the market value of any "newcomer" stock on Wall Street.
Founded in 1985, Blackstone Group Inc (BX) specializes in real estate management, hedge fund solutions and in private equity. Its share price added 3.6% on September 5 after the news that the stock will be added to S&P 500 list on September 18. Altogether, Blackstone is trading nearly 16% higher than at the end of June, yet its recovery rally still looks unfinished, as the current price range of $108-110 represents a big 27.7% discount compared to almost a $150 peaking price of November 2021.
Blackstone became a public company in 2007. Initially, the company was formed as a mergers and acquisitions advisory boutique by two former co-workers of Lehman Brothers. Meanings of their names gave the name to their firm, as "schwarz" in Schwarzman surname is German for "black" and both parts of Peter Peterson's name are associated with Greek words for "stone" or "rock".
The company’s index inclusion may drive significant buying from index funds, which distribute their invested money strictly between the companies from the S&P 500 list, in appropriate proportion with each company's caps. Blackstone's value is currently more than $122 billion, so that it is probably the world’s biggest alternative asset managing operator. To qualify for the S&P 500, companies must have a market capitalization of at least $14.5 billion, also meeting profitability, liquidity and share-float standards. Why did it happen that Blackstone was not a part of the S&P 500 list before now? It was only in April 2023 when S&P Dow Jones decided to drop its previous rule that barred corporations with multiple share classes from index membership, and Blackstone has the so-called dual share structure with unequal voting rights.
The decision on S&P membership for Blackstone would be effective prior to the open of trading on Monday, September 18, according to recent updates to S&P 500 lists. A press release on quarterly rebalancing for the S&P Global indexes, in order to ensure each index is more representative of its market capitalisation range, came out last Friday. The company's price soared by 7.23% during the following Wall Street session.
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