Paypal To Enter The S&P 100 & 500 Post-Spin; eBay To Remain In S&P 500

eBays’ (EBAY) long awaited spinoff of Paypal (PYPL) will be completed after the close today and the first day of trading for the new company will be Monday, July 20th. The breakup idea goes back a looooong way and was actually the subject of one of our first articles. EBAY shareholders should receive one share of PYPL for every EBAY share owned and the new company will trade on the Nasdaq under its old ticker ‘PYPL’.

The company has grown quite a bit though since its last days as an independent company (and continues to grow) and so it will join the S&P 100 and S&P 500 indexes post-spin. eBay will leave the S&P 100, but will remain in the S&P 500.

The rest of the index shuffling is detailed here:

PayPal Holdings Inc. (NASD:PYPLV) will replace eBay Inc. (NASD:EBAY) in the S&P 100 and Noble Corporation plc (NYSE:NE) in the S&P 500. Noble Corporation plc will replace HMS Holdings Corp. (NASD:HMSY) in the S&P MidCap 400, and HMS Holdings will replace Swift Energy Co. (NYSE:SFY) in the S&P SmallCap 600. These actions will be effective after the close of trading on Friday, July 17. Ebay is spinning off PayPal to shareholders in a transaction expected to be completed on that date. Ebay will remain in the S&P 500 following completion of the transaction. Noble has a market cap that is more representative of the mid-cap market space. HMS Holdings and Swift Energy rank near or at the bottom of their respective indices.

Noble actually spun off its standard spec rigs just about a year ago into Paragon Offshore (PGN), but the spinco is basically worthless these days, having lost nearly all of its value. Not all spins turn out well, but hopefully PayPal’s future is brighter. Even after acquiring Xoom last month, the company plans to keep on growing via acquisition and it certainly has the cash to do so.

Disclosure: Author holds no position in any stock mentioned.