What Happened?
Shares of industrial processing equipment and solutions provider Hillenbrand (NYSE: HI) fell 3.1% in the afternoon session after the stock continued to face downward pressure in the absence of any company-specific news, following its recent removal from several Russell stock indices. The industrial company was dropped from benchmarks such as the Russell 2500 Growth Index at the end of June 2025. Such changes to major stock indices can create technical selling pressure on a stock.
When a company is removed from an index, passive investment funds and exchange-traded funds (ETFs) that are designed to mirror that index's performance are forced to sell their holdings of the stock. This automatic selling by large institutional funds can lead to a decline in the share price, even without any new negative developments from the company itself.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hillenbrand? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Hillenbrand’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Hillenbrand is down 26.1% since the beginning of the year, and at $22.49 per share, it is trading 50.2% below its 52-week high of $45.14 from July 2024. Investors who bought $1,000 worth of Hillenbrand’s shares 5 years ago would now be looking at an investment worth $862.02.
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