Legg Ma­son bumped from S&P 500 In­dex

Health care firm to re­place Bal­ti­more money man­ager

Baltimore Sun - - AROUND THE REGION - By Sarah Gantz sarah.gantz@balt­sun.com

Legg Ma­son is be­ing bumped from the S&P 500, the stock mar­ket in­dex that in­cludes the 500 largest com­pa­nies by mar­ket cap­i­tal­iza­tion.

After mar­kets close to­day, the Bal­ti­more money man­ager will be re­placed by AmSurg Corp., a Ten­nessee health care com­pany that is ex­pected to fi­nal­ize its ac­qui­si­tion of an­other health care firm ear­lier in the day, boost­ing its mar­ket cap­i­tal­iza­tion.

Legg Ma­son will take AmSurg’s spot on the S&P Mid­Cap 400.

“We con­tinue to be­lieve in what we’re do­ing and will con­tinue to man­age our business as usual,” said Mary Athridge, a spokes­woman for Legg Ma­son. “It doesn’t change what we’re do­ing.”

Legg Ma­son’s stock closed up 2 per­cent, at $31.90 a share, in Wed­nes­day trad­ing.

With a mar­ket cap­i­tal­iza­tion of about $3.2 bil­lion, Legg Ma­son was ranked near the bot­tom of the S&P 500 and was more rep­re­sen­ta­tive of a mid-cap com­pany, S&P Dow Jones Indices said in a state­ment an­nounc­ing the change.

S&P’s in­dexes are or­ga­nized by mar­ket cap­i­tal­iza­tion, which is a cal­cu­la­tion based on the price of a com­pany’s stock and the num­ber of out­stand­ing shares.

Legg Ma­son’s mar­ket cap­i­tal­iza­tion has dropped about 23 per­cent, from $4.16 bil­lion, since the be­gin­ning of the year, as the com­pany bought back more stock and its stock price fell. Legg shares are down nearly 19 per­cent since Jan. 1.

Still, the move is not ex­pected to have a Legg Ma­son will move to the S&P Mid­Cap 400. “We … will con­tinue to man­age our business as usual,” a Legg spokes­woman said. ma­te­rial im­pact on in­vestors’ long-term out­look for Legg Ma­son, said Macrae Sykes, an an­a­lyst at Ga­belli & Co. in Rye, N.Y.

“I don’t think it’s a big deal,” Sykes said. “It doesn’t af­fect the fun­da­men­tal out­look for the com­pany.”

Bal­ti­more com­pa­nies still among the S&P 500 in­clude T. Rowe Price Group Inc., Un­der Ar­mour and McCormick & Co.

KIM HAIRSTON/BAL­TI­MORE SUN

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