by John R. Fischer
, Senior Reporter | January 04, 2023
Following its spinoff as an independent company, GE HealthCare will replace Vornado Realty Trust (VNO) in the S&P 500 index.
The company will begin trading on January 4, while VNO has been moved down to the S&P Midcap 400. Announced on December 28, the news did not change GE shares in after-hours trading that day but did cause Vornado’s to slip about 0.4%, according to MarketWatch
GE HealthCare is scheduled to remotely ring Nasdaq’s opening bell today.
"We are on the verge of true industry transformation as digital innovation reshapes the experience of patients and providers with an increased need for more precise, connected, and efficient care," said GE HealthCare President and CEO Peter Arduini in a statement.
In November 2021, GE announced
that it would spin off its healthcare unit, along with its energy and aviation businesses as three separate companies.
The spinoff was completed at the close of trading on January 3, with GE investors receiving one share of GE HealthCare for every three shares of GE they own, according to MarketWatch. The new stock will trade under the ticker symbol GEHC.
Under GE, GE Healthcare made $13.4 billion in the first nine months of 2022, down from $17.59 billion during the same time in 2021. Profit, however, rose from $1.16 billion to $1.31 billion in the comparable year-ago period, reported MarketWatch.
It has also fallen 14% in the last 12 months. While better than a 20% decline in that time for the S&P 500, it is worse than an 8.7% decline by the Dow Jones Industrial Average, which removed GE from its blue-chip index
in 2018 after 111 consecutive years as a member.