On June 2, Epam Systems rose 5.58% in regular trading, trading at $108.4/share, with trading volume of $76.20 million. The stock rallied as it was officially added to the S&P SmallCap 600 index before the market open.

S&P Dow Jones Indices previously announced that FedEx Freight would join the S&P 500 effective June 2 following its spinoff from FedEx, with EPAM Systems being removed from the S&P 500 to make room. Simultaneously, EPAM was added to the S&P SmallCap 600, replacing Shutterstock, which is expected to be acquired in a deal closing soon. The index reconstitution likely triggered buying from SmallCap 600 tracking funds.

Notably, Jefferies recently downgraded EPAM from Buy to Hold, cutting its target price from $130 to $110. However, the FactSet consensus among analysts maintains an average target of $147.38, suggesting the current share price remains significantly below broader market expectations. The stock continues to trade at a notable discount to the analyst consensus despite the intraday advance.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)