Carvana Co. exited the Russell Midcap Index, a move that requires index-tracking funds to sell their positions. These mandatory divestments often create significant downward pressure on a company's share price.
The exclusion follows a period of high stock volatility for the online used-car retailer. Carvana recently implemented measures to improve its balance sheet and financial health. Investors are monitoring the market's response to gauge sentiment regarding the company’s long-term prospects.