What Happened?

Shares of golf equipment and apparel company Acushnet (NYSE:GOLF) jumped 10% in the morning session after the S&P Dow Jones Indices announced that the company would be added to the S&P SmallCap 600 index before the opening of trading on Thursday, February 13, 2025. Being included in the index means that Acushnet will likely be held by many mutual funds and ETFs, which could potentially drive up demand for the stock. 

We note that while buying of the stock could increase, this development does not change the fundamentals of the company. Revenue growth, expense efficiency, and capital intensity of the business, for instance, are not impacted by index inclusion or exclusion, so this is more of a technical tailwind for the stock.

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What The Market Is Telling Us

Acushnet’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Acushnet and indicate this news significantly impacted the market’s perception of the business.

Acushnet is down 4.8% since the beginning of the year, and at $68.49 per share, it is trading 9.6% below its 52-week high of $75.78 from January 2025. Investors who bought $1,000 worth of Acushnet’s shares 5 years ago would now be looking at an investment worth $2,265.

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