UWM Holdings (UWMC) - Get Report shares jumped Wednesday after FTSE Russell said the mortgage lender was on its preliminary list of newly public companies joining the Russell 1000 and Russell 3000 Indexes.
UWM went public last April and is a favorite of the Reddit crowd.
The Russell 1000, a subset of the Russell 3000 Index, includes the 1000 top companies by market capitalization in the U.S. It encompasses about 92% of all U.S. stock-market cap.
The Russell 3000 is market-cap-weighted and includes the 3,000 largest U.S.-traded stocks, totaling about 98% of U.S. stocks.
UWM is slated to join the indexes March 21.
UWM stock recently traded at $10.88, up 19%. It had slid 6.7% since going public April 27 through Tuesday’s close.
Stocks frequently rise when they become part of major indexes. That's because funds that track the indexes must buy them. And some investors want or are required to hold companies inside certain indexes.
Rocket Cos. (RKT) - Get Report, the parent of Quicken Loans and Rocket Mortgage and another Reddit favorite, elevated at warp speed on Tuesday, boosted by falling interest rates, a strong earnings report and a possible lift from retail investors. It gained 71% on Tuesday. It recently traded at $36.59, down 12%.
Rocket stock was one of the most active stocks in the options market on Monday, according to Investor’s Business Daily, with total volume of more than 365,000 contracts.
The stock could also be a Reddit target for its high short interest. The company has large short bets placed against it by hedge funds, CNBC reported.