Honeywell Drops a Stock Listing Bombshell

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Century old industrial big

Honeywell International

is leaving the New York Stock Exchange, flipping its itemizing to

Nasdaq.

The shock transfer is all about notion, nevertheless it does have inventory implications for traders to weigh.

The information is perhaps a blow to NYSE, owned by

Intercontinental Exchange

(ticker: ICE).

Honeywell International

(HON) simply celebrated 100 years of buying and selling on the massive board.

It’s a coup for Nasdaq (NDAQ), although. And the swap is going on as a result of Honeywell needs to be seen as a tech company.

“Honeywell is the world’s premier software-industrial company, shaping the future of technology and sustainability,” stated CEO
Darius Adamczyk
in a assertion. “Nasdaq’s long tradition of listing category-defining technology companies aligns well with Honeywell’s cutting-edge technology and sustainability portfolio.”

Honeywell, underneath Adamczyk’s management, shaped a software program unit known as Honeywell Connected Enterprise, run by former

Microsoft

(MSFT) government Que Dallara. The firm is beginning to collect and use all the info coming from the myriad industrial belongings its merchandise assist to manage. That knowledge can then be used to optimize and enhance industrial operations across the globe.

Eventually, Honeywell needs to turn out to be to the economic business what

SAP

(SAP. Germany) has become for workers submitting expense studies or

Salesforce.com

(CRM) has turn out to be for workers mining for brand new gross sales leads.

It’s a sensible technique. Software firms, with excessive revenue margins and recurring subscription revenues, are extra helpful than industrial corporations. Honeywell is among the most useful industrial corporations on the planet with a market capitalization of about $156 billion. Salesforce has a market capitalization of about $216 billion—and isn’t the most important software program supplier. Microsoft’s market cap is approaching $2 trillion.

Of course, Honeywell simply calling itself a software program firm doesn’t make it so. Honeywell must generate high-profit margins gross sales by monetizing the info from its industrial asset base.

It’s a symbolic transfer. And the change isn’t impacting the inventory all that a lot Friday. Honeywell shares had been down about 0.3% in early buying and selling. The S&P 500 and

Dow Jones Industrial Average

had been each down about 0.5%.

The swap will even make Honeywell eligible for inclusion within the

Nasdaq-100 Index,

which may affect the inventory. Any fund managers managing cash listed to that benchmark will now be shopping for Honeywell shares. Still, the general affect on the inventory worth might be small. Honeywell, in fact, is already in massive, well-liked indexes such because the

S&P 500.

Write to Al Root at allen.root@dowjones.com