What happened
Online delivery service Grubhub (GRUB) has been purchased by Netherlands-based Just Eat Takeaway.com (JTKWY -4.45%) and will be leaving U.S. stock indexes as a result. The resulting shuffle will affect the placement of Callaway Golf (MODG 1.26%) as well as Apollo Medical Holdings (AMEH 1.44%), 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.
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.
