According to a statement released Friday by S&P Dow Jones Indices, which runs the S&P 500, Allegion Plc, a provider of mechanical and electronic security for homes and businesses, will replace JCPenney on the prestigious index. Now JCPenney, which reported a wider third quarter loss last week, will be among the S&P MidCap 400 Index replacing Aeropostale which will move to the SmallCap 600 Index. JCPenney’s and Aéropostale’s market capitalizations are now more representative of the mid cap market and small cap market spaces respectively,” S&P Dow Jones Indices stated.
JCPenney’s downward stock spiral began during the disastrous 17-month tenures of ousted CEO Ron Johnson who initiated a transformation of the department store. Under CEO Mike Ullman, JCPenney is showing signs of stabilizing but the company’s stock has dropped some 55% this year to about $8.87 a share and giving the retailer a market capitalization of about $2.7 billion.
The S&P 500 Index is widely regarded as the best single gauge of major U.S. equities, accounting for some $1.6 trillion in assets including 500 leading companies representing about 80% of available market capitalization.
JCPenney was one of 68 original members of the S&P 500 when it was created in 1957.
Sears Holdings, another original member of the S&P 500, was booted from the index last year.