Verisk Advances After Being Picked to Join S&P 500 IndexKatherine Chiglinsky
Verisk Analytics Inc., the provider of data to insurers and banks, climbed the most since July after the company was named to join the Standard & Poor’s 500 Index.
Verisk rose $4.25, or 5.8 percent, to $78.16 at 4 p.m. in New York trading. S&P said Wednesday that the firm would replace Joy Global Inc., the world’s biggest manufacturer of underground mining equipment, in the index at the close of trading on Oct. 7.
The data provider’s share price has more than tripled since its 2009 initial public offering as the Jersey City, New Jersey-based company pursued acquisitions to expand beyond its insurance roots. Chief Executive Officer Scott Stephenson in May purchased Wood Mackenzie for 1.85 billion pounds ($2.8 billion) to push into the energy and mining industries.
“Our confidence in Verisk’s growth sustainability is rooted in its superior data, leading market position, commitment to long-term margin expansion, capable management and disciplined capital strategy,” Andrew Jeffrey and Oscar Turner, analysts at SunTrust Robinson Humphrey Inc., said in a note Thursday.
Revision in the index may prompt money managers to shift holdings. More than $7 trillion is benchmarked to the gauge, according to the S&P website.
Joy Global dropped 4.1 percent to $14.32, extending its loss for the year to about 69 percent.