Avid Technolgy’s (AVID) stock is surging in pre-market activity on Tuesday, after it was announced the stock will join the S&P 600 Small Cap Index. The stock price jumped because whenever a stock is added to an index, all ETFs that track that index automatically purchase that stock.
Avid Technology engages in the provision of technology services for media and entertainment industry. It develops, markets, sells, and supports software and integrated solutions for video and audio content creation
Avid will replace Plantronics/Poly in the index. The latter is being acquired by HP (HPQ). The change will take effect before market opens on Thursday, September 1st.
Is Avid a Good Stock to Buy?
Based on the four analysts who have rated AVID stock in the past three months, it has a Strong Buy consensus, implying a 44% upside. The average AVID price target is $34.75, with a high forecast of $42.00 and a low forecast of $30.00.
