Royal Caribbean Cruises is about to take its place in the S&P 500, the closely watched index of large U.S. company stocks. The Miami-based company, which is the second largest cruise operator, will take the place of Bemis Company in the index after the end of trading Thursday, according to S&P Dow Jones Indices.
Bemis, a Wisconsin-based maker and seller of packaging products and other materials, will shift into the S&P MidCap 400. Royal Caribbean has been part of the S&P Total Market Index. Because of its large number of stocks and broad diversification, the S&P 500 is considered a proxy for the overall viability of the wider U.S. stock market.To become part of the large cap index, companies must have a market value of at least $5.3 billion, and at least half of its outstanding shares must be up for trading.
Royal Caribbean has a market capitalization of roughly $17.3 billion. Royal Caribbean encompasses six brands, including Royal Caribbean International and Celebrity Cruises. The move into the closely monitored S&P 500 means a likely pop in Royal Caribbean’s stock price as mutual, and other exchange traded, funds scoop up shares to match the company’s new weighting in the index. Royal Caribbean closed at $77.82 Wednesday, up 1.4%. Year to date, its shares are up 65%.