Palo Alto Networks promoted to S&P 500, replacing Dish Network

Shares of Palo Alto Networks Inc. rallied in the extended session Friday after S&P Dow Jones said it would include the cybersecurity platform company’s stock in the S&P 500 index.

Palo Alto Networks
PANW,
+0.21%

shares surged as much as 5% in after-hours trading, following the announcement that Palo Alto Networks will replace Dish Network Corp.
DISH,
+16.24%

on the S&P 500
SPX,
+1.45%
.
The move will happen June 20, following the Juneteenth holiday on June 19, in a quarterly rebalancing of the index.

Palo Alto Networks, which recently reported earnings and sees AI transforming the software industry over the next 12 months, has seen its shares rally 55.7% year to date, resulting in a market cap of $66.44 billion. The S&P 500 has gained 11.5% on the year.

Read:Palo Alto Networks, software industry to undergo AI ‘transformation’ over next 12 months, CEO says

Dish shares declined nearly 3% after hours after being demoted to a different S&P index. Shares experienced a 16.2% rally in the regular session Friday, following a report that Amazon.com Inc.
AMZN,
+1.21%

is in talks to offer mobile phone service free to Prime members.

Dish will replace skin-care device maker Cutera Inc.
CUTR,
+1.12%

on the S&P MidCap 400 index
MID,
+3.27%
,
S&P said, noting that the changes are to “ensure each index is more representative of its market capitalization range.” Dish shares have fallen 48% this year, resulting in a market cap of $3.89 billion.

Read: Verizon’s stock sinks to 12-year low while Dish’s soars after report Amazon is in talks to offer mobile plans for Prime members

After rising 1.1% to close Friday at $17.15, Cutera shares fell more than 5% after hours. At Friday’s close, shares were already down 61.2% year to date as the company has undergone a leadership shake-up, giving the company a market cap of $340 million, according to FactSet data.

Read: Cutera stock slides after earnings; company appoints interim CFO, reaches board deal with big investors

Other changes to the S&P’s smaller cap indexes also set other stocks into after hours motion late Friday.

Shares of Planet Fitness Inc.
PLNT,
+0.92%
,
Zoominfo Technologies Inc.
ZI,
+2.08%
,
Doximity Inc.
DOCS,
+4.69%
,
and BWX Technologies Inc.
BWXT,
+2.49%

moved 4% higher after hours Friday as S&P moved the stocks to its midcap index.

Meanwhile, shares of Crown Holdings Inc.
CCK,
+3.98%
,
Dropbox Inc.
DBX,
+2.11%
,
Graphic Packaging Holding Co.
GPK,
+3.48%
,
and Wesco International Inc.
WCC,
+7.23%

all rose at least 2% or more on their midcap inclusion.

Shares of CarGurus Inc.
CARG,
+1.99%

surged 6% after S&P said it would add the auto research and shopping site to its S&P Small Cap 600 index
SML,
+4.06%
.

Shares of PetMed Express Inc.
PETS,
+3.24%
,
Children’s Place Inc.
PLCE,
+9.05%
,
and Zumiez Inc.
ZUMZ,
-1.46%
,
Gannett Inc.
GCI,
+2.74%

and LendingTree Inc.
TREE,
+7.89%

all fell more than 3% late Friday on their scheduled removal from the small-cap index.

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