Harley-Davidson Removed from the S&P 500 Stock Listing

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Some motorcycle news from Wall Street, as we get word that Harley-Davidson will be removed from the S&P 500 list effective June 22nd. 

A key index for a snapshot on the state of the American business landscape, the S&P 500 gets its name because it measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Being included on the S&P 500 is point of prestige for a brand, and Harley-Davidson’s removal is sure to be a psychological blow to the company, which has been struggling as of late.

There is likely to be a minor financial hit to Harley-Davidson stock as well, as certain investment funds can only invest in S&P 500 companies, usually as a means of managing risk.

Harley-Davidson’s removal almost certainly has to do with the company’s struggling stock price and its subsequent drop in market capitalization because of that struggle.

Harley-Davidson currently has a market cap of $3.89 billion, which is well shy of the $8.2 billion that is normally required for a brand to be included on the index.

With S&P moving Harley-Davidson to its S&P MidCap 400, this move seems to confirm the notion that Harley-Davidson is no longer consider a large-capitalization firm worthy of the S&P 500 designation.

In addition to Harley-Davidson being removed from the S&P 500, two other companies – Nordstrom Inc. and Alliance Data Systems Corp. – will also be removed from the index.

They will be replaced by Tyler Technologies Inc., Bio-Rad Laboratories Inc. and Teledyne Technologies Inc.

Source: Milwaukee Journal Sentinel

Jensen Beeler

Despite his best efforts, Jensen is called one of the most influential bloggers in the motorcycle industry, and sometimes consults for motorcycle companies, whether they've solicited his expertise or not.