Many have written to me to ask about index inclusion. I’m no expert, but here are some resources:
$11.8B / 7,756,156 shares (is it bad that I that number by heart?) = $1,521.37
To be eligible for S&P 500 index inclusion, a company should be a U.S. company, have a market capitalization of at least USD 9.8 billion, be highly liquid, have a public float of at least 10% of its shares outstanding, and its most recent quarter’s earnings and the sum of its trailing four consecutive quarters’ earnings must be positive.
The committee meets monthly. At each meeting, the Index Committee reviews pending corporate actions that may affect index constituents, statistics comparing the composition of the indices to the market, companies that are being considered as candidates for addition to an index, and any significant market events.
• S&P Composite 1500. Using composite pricing and volume, the ratio of annual dollar value traded (defined as average closing price multiplied by historical volume over the last 365 calendar days) to float-adjusted market capitalization should be at least 1.00, and the stock should trade a minimum of 250,000 shares in each of the six months leading up to the evaluation date.
With 252 trading days, the stock needs (1.00 / 252) = 0.4% of shares traded per day on average. See last post for more context on that.
Again, not an expert but it seems like TPL is on its way. Poke holes in the comments! Not trying to spike the football on the current run. As a long time investor, being back to $900 next week would not shock me. This stock jumps. But over the long run, will it get into the 500?