Bill Holdings Stock Rallies In Premaker On News Of S&P MidCap 400 Inclusion: Retail Does Not Share Excitement

Bill Holdings, Inc. ($BILL) stock rose sharply in Thursday’s premarket session, reacting to the news of index inclusion but retail sentiment remained downbeat.

S&P Dow Jones Indices announced late Wednesday that Bill Holdings will replace Lennox International, Inc. ($LII) in the S&P MidCap 400 Index, effective before the market opens on Monday, Dec. 23. 

Lennox is set to join the S&P 500 Index, replacing Catalent, Inc. ($CTLT), which is being acquired by Novo Holdings A/S.

Index inclusion is positive for a company’s stock as exchange-traded funds and other index funds holding portfolios mirroring the index will add it, resulting in higher volumes and liquidity.

San Jose, California-based Bill Holdings is a financial operations platform for small and midsize businesses (SMBs). The company’s integrated platform helps businesses to control their payables and receivables, and manage spend and expenses.

Earlier this month, the company raised gross proceeds of $1.4 billion through an offering of 0% convertible senior notes due 2030. It recently launched 1099 Form filing for SMBs to simplify their 1099 taxes within its operational platform. 

Bill Holdings reported better-than-expected fiscal year 2025 results in early November.

BILL sentiment and message volume December 19, 2024, premarket as of 6:31 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward Bill Holdings stock is ‘extremely bearish’ (18/100), deteriorating from the ‘neutral' mood that prevailed a month ago. Retail chatter around the stock improved to ‘extremely high’ levels.

A retail user of the platform feared that broader market negativity could take the sheen off the stock that stemmed from the index inclusion.

Before news broke about the index inclusion, another user commented the stock is poised to trade at sub-$80 level.

In premarket trading, Bill Holdings shares were up 4.10% at $87.12 as of 6:31 a.m. ET. The stock has gained merely 2.6% for the year, underperforming the Nasdaq Composite Index, which is up 29%.

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