MDU Resources (NYSE:MDU) stock is on the move Thursday alongside news of its spinoff joining the S&P MidCap 400.
According to MDU Resources, Knife River (NYSE:KNF) is joining the S&P MidCap 400 when markets open this morning. This comes after the company announced plans to spin off the business last month.
One thing for investors to note is that MDU Resources will continue to remain part of the S&P MidCap 400 even after the spinoff. This will bump Bank of Hawaii (NYSE:BOH) off the S&P MidCap 400 to the S&P SmallCap 600. It will also see HomeStreet (NASDAQ:HMST) removed from that same list.
What About MDU Stock Falling?
MDU Resources stock falling early on Thursday makes sense. With this spinoff, the company is losing value by separating Knife River out as its own business. However, it’s worth noting that about 90% of KNF shareholders will be current MDU shareholders.
Investors will note that MDU stock isn’t seeing major activity on Thursday despite the spinoff going into effect. As of this writing, only about 11,000 shares of the company’s stock have changed hands as of this writing. That’s still well below its daily average trading volume of about 1 million shares.
While shares of MDU stock were down in early pre-market trading on Thursday, it’s since recovered from that drop as of this writing.
Investors looking for more of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage that traders need to know about on Thursday! Our coverage includes why shares of QuantaSing (NASDAQ:QSG) and T2 Biosystems (NASDAQ:TTOO) stock are up, as well as more of the latest market news. You can find all of that info at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
