Hannon Armstrong Joins S&P SmallCap 600: Time to Buy?
Nasdaq On Sept. 1, after the markets closed, S&P Dow Jones Indices announced many changes to its various broad-market indices. One of these changes saw Hannon Armstrong Sustainable Infrastructure Capital (HASI) added to the S&P SmallCap 600.
Whenever stocks are added to broad-market indices, they usually rise in value in anticipation of index-based portfolio managers having to add the stocks to their holdings. In this instance, the real estate investment trust will be added to the small-cap index before the markets open on Sept. 18.
The news had HASI stock up 8% in Tuesday trading and 22% over the past five days.
While there is no question that the clean energy real estate investment trusts (REIT) stock is on a roll, that doesnt necessarily make it a buy.
Here are the pros and cons of owning HASI for the long haul.
Why You Want to Own HASI Stock
Most of the clean energy debt and equity investments it makes are in assets backed by long-term power purchase agreements. That makes the interest payments its clients owe generally a safe and sure thing.