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Investors Business Daily
Investors Business Daily

Allegro Microsystems, CubeSmart To Join S&P MidCap 400; ALGM Stock Set To Break Out

Allegro Microsystems and CubeSmart will replace Semtech and NuVasive in the S&P MidCap 400, S&P Dow Jones Indices announced late Friday.

Allegro Micro and CubeSmart will join the MidCap 400 before the open on Dec. 19. Semtech and NuVasive will drop to the S&P SmallCap 600, Diversified Healthcare Trust and Tupperware Brands.

In other S&P 600 moves, Agiliti, SJW Group and Cushman & Wakefield will replace LL Flooring Holding, Cato Corp. and Diebold Nixdorf.

ALGM Stock Breakout?

ALGM stock jumped 5% to 33.06 early Monday. That suggests a breakout from a 50%-deep cup-with-handle base with a 32.07 buy point. However, the handle doesn't appear on a weekly chart, with Allegro Microsystems running up for seven straight weeks from a two-year low. ALGM stock closed Friday 25% above its 50-day moving average.

Allegro Microsystems makes specialized integrated circuits for the auto and industrial circuits, benefitting from electric vehicles and self-driving technology.

CUBE stock leapt nearly 6% in premarket trade, perhaps ready to test its long-sliding 200-day line. The self-storage REIT reclaimed its 50-day line last week.

Meanwhile, SMTC stock rose 2% and NuVasive about 3%. More mutual funds and ETFs track the S&P 600 than the MidCap 400, so this "demotion" comes with a pay raise. Allegro Microsystems and CubeSmart are not currently in the S&P 600.

Agiliti, SJW Group and CWK stock rose 4%, 7% and 8%, respectively, late Friday.

Diversified Healthcare Trust, Tupperware, LL Flooring, Cato and Diebold Nixdorf all fell solidly.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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