Posted on 06/06/22
| News Source: FOX Baltimore
Under Armour will be dropped from the S&P 500 stock index on June 21, the S&P Dow Jones Indices announced Friday.
Keurig Dr. Pepper Inc. and ON Semiconductor Corp. will be added to the index while Under Armour and IPG Photonics Corp. will be cut.
Dow Jones said the Baltimore-based sportswear company is now more representative of the mid-cap market space and will join the S&P MidCap 400 index.
The S&P 500 Index features 500 leading U.S. publicly traded companies such Apple, Amazon and Microsoft.
Last June, Dow Jones updated its rules for the S&P. Companies now must have a market capitalization of at least $13.1 billion to join. Under Armour's current market capitalization is around $5 million.
Under Armour had a rough 2022. Last month, the company reported a loss of $59.6 million in the first quarter. The results fell short of Wall Street expectations. A few weeks later, Patrik Frisk announced he would step down as Under Armour president and chief executive officer in a surprise move. The company's stock price has dropped more than 50 percent after the announcement of Frisk's departure and those disappointing first-quarter results.
Under Armour founder Kevin Plank has said that he will not return as CEO after the Baltimore-based company.