That Can’t Be a Good Sign
It’s no secret that Harley-Davidson is struggling to make things work right now. The company recently filed for a new line of credit and it’s had a quarter after quarter of sales declines. I recently learned of some more bad news: as of June 22, 2020, Harley-Davidson will no longer be a part of the S&P 500 index.
The S&P 500 index is a stock market index that tracks the stock performance of the 500 biggest U.S companies that are in the stock market. This index features huge names like Microsoft, Amazon, and Facebook. Until recently, Harley-Davidson made the cut.
Recently the company has seen the value of its shares drop far enough to have it pass out of the S&P 500 index’s requirements, according to the Milwaukee Journal Sentinel.
“I don’t think it’s significant,” president of GVR Investment Management Inc. George V. Reis told the Milwaukee Sentinel. “I would guess it might have an impact on the share price for a day or two. After that, I don’t think it makes any difference. There are a lot of companies that are not on the S&P 500 that are of significance,” he added.
Reis is right. Dropping out of the S&P 500 index isn’t the end of the world. However, it is an indicator that Harley is going through a slow but steady decline.