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Here's Why Callaway Golf and Apollo Medical Stocks Moved Today

By Howard Smith - Jun 11, 2021 at 12:24PM

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The companies are being shuffled into new stock indexes.

What happened

Online delivery service Grubhub (GRUB) has been purchased by Netherlands-based Just Eat (JTKWY 25.60%) and will be leaving U.S. stock indexes as a result. The resulting shuffle will affect the placement of Callaway Golf (ELY -4.08%) as well as Apollo Medical Holdings (AMEH -1.23%), and the stocks are moving today because of it. At 11:45 a.m. EDT, Callaway Golf shares were down about 3%, but ApolloMed stock had jumped almost 17%. 

So what

On June 15, Callaway Golf will replace Grubhub in the S&P MidCap 400 index, while healthcare management company ApolloMed will join the S&P SmallCap 600.

foursome of golfers carrying bags with clubs on a golf course.

Image source: Getty Images.

Now what

ApolloMed provides its solutions to physicians, health plans, hospitals, and other health providers using its technology and healthcare model. The company aims to maximize efficiency and quality of care while reducing unnecessary hospital admissions, re-admissions, and emergency room visits. The California-based $2 billion company has been growing, having recently acquired Sun Clinical Labs to integrate its value-based care delivery platform.  

The larger Callaway Golf, which has a market cap of about $6.5 billion, has also been expanding recently. It completed its merger with golf entertainment and experience company Topgolf in March 2021. In its first-quarter 2021 financial update, Callaway said Topgolf has been exceeding expectations because its business recovered from pandemic impacts sooner than anticipated. Callaway raised guidance for investors in its May release, saying it now expects 2021 results from the legacy Callaway business and the Topgolf business will each exceed 2019 levels. The company previously didn't expect to reach that level by the end of 2021. 

Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends Just Eat N.V. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Callaway Golf Company Stock Quote
Callaway Golf Company
$23.76 (-4.08%) $-1.01
Apollo Medical Holdings, Inc. Stock Quote
Apollo Medical Holdings, Inc.
$46.68 (-1.23%) $0.58
GrubHub Inc. Stock Quote
GrubHub Inc.
Just Eat N.V. Stock Quote
Just Eat N.V.
$4.17 (25.60%) $0.85

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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