In a change effective February 28 Incyte (INCY) will replace Spectra Energy (SE) in the Standard & Poor’s 500 stock index. Spectra Energy is being acquired by Enbridge (ENB.) All those index funds and ETFs that track the S&P 500 will have to buy shares of Incyte to match the change.
Incyte shares were up 0.59% during Thursday’s regular trading session and then rose 4.06% to $126.90 in after-hours trading once the change had been announced. On Friday the shares closed up 7.59% to $131.21.
Incyte is a member of my Jubak Picks 12-18 month portfolio. The shares are up 173.8% as of the close on February 23 since I added them to the portfolio on April 17, 2014. On February 20 I raised my target price on Incyte to $142 a share from the previous $125.
