In this article, we are going to look at the 7 Spin-Off Companies in 2025.
A corporate spin-off typically involves a company separating a part of its existing business as a standalone entity while the parent company remains active. The US Securities and Exchange Commission defines a spin-off as a transaction in which a parent company distributes shares of a subsidiary to its shareholders, thereby creating a separate, independent company.
Companies may pursue spin-offs for several reasons. Most often, the decision is driven by a lack of synergy between business divisions or due to a suboptimal allocation of resources. A parent company may also seek to enable a business unit to reach its full potential and grow more rapidly independently. As a result, each newly formed entity can focus on a distinct strategy and objectives to improve overall competitiveness.
READ ALSO: Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and 11 Best Stocks You’ll Wish You Bought Sooner.
Over time, some companies may become overly diversified, developing complex ownership structures that contribute to a holding-company discount. A spin-off can help eliminate such discounts by simplifying operations and increasing focus on the core business. In addition, when structured as a tax-free transaction, a spin-off also allows parent companies to distribute shares of the new entity to their shareholders without any party incurring capital gains tax.
Some of these themes came to the fore in a December 10 CNBC interview, in which Peter Ter Kulve, CEO of The Magnum Ice Cream Company, discussed the company’s prospects following its recent spin-off from Unilever. He said that the decision to separate the business was driven by focus. According to him, Unilever needed to concentrate on its broader categories, while Magnum required dedicated focus on ice cream. He further stated:
“I now have 19,000 people who go to bed thinking about ice cream, who get up thinking about ice cream, and we’re able to invest behind growth opportunities. And we don’t have to balance that between all kinds of different categories in Unilever. But the focus is on ice cream.”
Do Spin-Offs Create Shareholder Value?
Despite their many strategic benefits, there has long been scepticism about the performance of spun-off companies. While there is no recent comprehensive study on this topic, Harvard Business Review (HBR) examined the subject in 2022 (“Research: Few Corporate Spinoffs Deliver Value”), analyzing more than 350 public spin-offs valued at more than $1 billion between 2000 and 2020.
Surprisingly, the study found that 50% of companies pursuing a separation failed to create any incremental shareholder value two years later, while about 25% destroyed significant value. There was also a vast disparity between the performances of winners and losers. The HBR researchers noted:
“Companies in the bottom quartile completed separations that actually destroyed value by as much as 50% of the combined market cap. At the same time, while most companies saw little for their efforts, top-quartile separations performed exceptionally well, with 75% higher combined market cap two years after the separation.”
With that background, let us explore the seven spin-off companies in 2025.
Kritchanut/Shutterstock.com
Our Methodology
To identify the stocks for this article, we screened for companies spun off in 2025. We excluded companies that were too small or had received no active coverage from either analysts or financial media. We then selected seven companies and ranked them by market cap in ascending order. Additionally, we included data on hedge fund holdings in these companies, based on Q3 2025 data from Insider Monkey’s database, to provide further insight into investor interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All pricing data is as of market close on December 26, 2025.
7. Angi Inc. (NASDAQ:ANGI)
Market Cap: $561.4 Million
Date of Spin-off: 01-Apr-2025
Number of Hedge Fund Holders: 25
Angi Inc. (NASDAQ:ANGI) is the first and smallest of the spin-off companies in 2025. The company was part of IAC Inc. (NASDAQ:IAC), a media and internet company, which completed the spin-off on March 31, 2025, through a special dividend (a distribution) of all Angi common stock, owned by IAC, to holders of IAC common stock and IAC Class B common stock. Before the spin-off, Angi was a listed company, but IAC controlled it through its economic and voting interests in Angi of 85.3% and 98.3%, respectively, as of December 31, 2024.
In a recent analyst update, RBC Capital Markets analyst Brad Erickson reiterated a Hold rating on Angi Inc. (NASDAQ:ANGI) with a price target of $18.00 on December 17. As a relatively small company, Angi hasn’t seen significant analyst activity recently, particularly after reporting weaker-than-expected earnings in early November.
As of December 26, the consensus view remains cautious: only 40% of analysts covering the stock assign a Buy rating, and the remainder rate it a Hold. There is a substantial divergence between the high ($27) and low ($14) price targets, with the median price target of $18 still indicating nearly 42% upside.
Consistent with the cautious analyst view, the company’s share price has been volatile. Since the spin-off, the stock has declined around 18% and nearly 24% year to date.
As of the latest update, the company has consolidated its five international business platforms into a single unified platform. It is now working to integrate this platform with three of its U.S. platforms into a single global platform, with a target completion date of Q1 2027. The company is also accelerating software development to create a modern AI-first platform.
Angi Inc. (NASDAQ:ANGI) operates platforms for home services, connecting home professionals with consumers across more than 500 categories, from home repair and remodelling to cleaning and landscaping.
6. Millrose Properties Inc. (NYSE:MRP)
Market Cap: $5.0 Billion
Date of Spin-off: 07-Feb-2025
Number of Hedge Fund Holders: 34
Millrose Properties Inc. (NYSE:MRP) is among the spin-off companies in 2025. Millrose was previously a wholly owned subsidiary of Lennar Corp. (NYSE:LEN), which, on February 7, 2025, completed the spin-off of Millrose, distributing approximately 80% of Millrose’s stock to its stockholders. After this transaction, MRP became an independent company listed on the NYSE.
As part of the Spin-Off, Lennar contributed $5.5 billion in land assets, including approximately 87,000 homesites, and $1 billion in cash to the company. However, it retained approximately 20% of Milrose’s outstanding common stock.
In a vote of confidence, on December 2, BTIG analyst Ryan Gilbert initiated coverage on Millrose Properties Inc. (NYSE:MRP) with a Buy recommendation and a price target of $35, according to The Fly. The initiation was part of Gilbert’s industry initiation note on the homebuilding and real estate services sector, and the analyst believes Milrose stock is “cheap relative to the opportunity.” Moreover, his positive thesis was based on the belief that the company can provide builders with a “compelling rate, both due to its cost of capital advantages and services via its technology platform.”
Additionally, on December 22, the company announced a quarterly cash dividend of approximately $124.5 million, or $0.75 per share, which exceeded the $0.73 per share paid in October. The record date for the dividends is January 5, 2026, and they will be payable on January 15.
Since its spin-off and subsequent listing, the company’s stock has performed strongly, rising 41%.
Millrose Properties Inc. (NYSE:MRP) is a Homesite Option Purchase Platform (HOPP’R) for residential homebuilders. The company purchases and develops residential land and sells finished homesites back to homebuilders through option contracts with pre-agreed prices and a set schedule.
5. Ralliant Corp. (NYSE:RAL)
Market Cap: $5.8 Billion
Date of Spin-off: 30-Jun-2025
Number of Hedge Fund Holders: 45
Ralliant Corp. (NYSE:RAL) is among the spin-off companies in 2025. On June 28, 2025, Fortive Corp. (NYSE:FTV) completed the spin-off of Ralliant, transferring its Precision Technologies business through a pro rata distribution of shares to Fortive shareholders. Ralliant started trading on the NYSE on June 30.
The company witnessed several positive analyst moves in December. The latest of those came from Ian Zaffino, an analyst at Oppenheimer, who reiterated his bullish stance on the company with an Outperform rating on December 15, according to The Fly. The analyst also raised his price target on the stock from $55 to $60.
Zaffino’s optimistic view was supported by management’s robust long-term growth outlook and its execution as an independent company, as evidenced by strong Q3 results.
Before Zaffino’s update, Truist analyst Kevin Wilson initiated coverage of Ralliant Corp. (NYSE:RAL) on December 12, assigning a Buy rating and a $62 price target, citing its “stronghold positions in attractive growth markets.” He believed that the company benefits from its exposure to markets such as electrification & digitization, grid modernization, and defense technology, which, along with a portfolio of high-margin businesses, position it as a “compelling combination.”
Earlier, on December 8, an analyst at Citi upgraded the stock from Neutral to Buy and raised his price target from $53 to $61, citing a “relatively undemanding” valuation.
Ralliant Corp. (NYSE:RAL) is a technology company that designs, develops, manufactures, and services precision instruments and highly engineered products.
4. Solstice Advanced Materials Inc. (NASDAQ:SOLS)
Market Cap: $7.9 Billion
Date of Spin-off: 30-Oct-2025
Number of Hedge Fund Holders: N/A
Solstice Advanced Materials Inc. (NASDAQ:SOLS) is among the spin-off companies in 2025. In October 2024, the company’s parent, Honeywell International Inc. (NASDAQ:HON), approved the spin-off of its Advanced Materials business into an independent, U.S. publicly traded company. The spin-off was completed on October 30, 2025, through a pro rata distribution to Honeywell shareholders, who received one Solstice Advanced Materials common share for every four Honeywell common shares held.
On December 17, RBC Capital Markets analyst Arun Viswanathan reiterated his Hold rating on Solstice Advanced Materials Inc. (NASDAQ:SOLS) and set a $50 price target. Consistent with Viswanathan’s view, the consensus currently reflects a mixed view on the stock, with four in seven analysts assigning a Buy recommendation and three a Hold.
As of December 24, Solstice Advanced Materials Inc.’s (NASDAQ:SOLS) share price performance has been lacklustre, with shares down approximately 6% since the listing.
However, the company appears to be executing its expansion strategy to drive future growth. On December 2, the company announced the start of expansion and modernization of its electronic materials facility in Spokane Valley, Washington, through a $200 million investment. This expansion is expected to double the facility’s sputtering-target (specialized materials for semiconductors) production capacity by 2029.
Solstice President and CEO David Sewell called the groundbreaking event for the facility an investment “in the future of American semiconductor innovation”. He further stated:
“As demand accelerates for artificial intelligence, high-speed computing and connected technologies, we are preparing the Spokane facility to deliver the quality, reliability and scale our customers need to drive innovation. The expansion project underscores our commitment to strengthening supply chain resilience, enhancing production efficiency and driving sustainable manufacturing innovation in this exciting growth market.”
Solstice Advanced Materials Inc. (NASDAQ:SOLS) is a global specialty chemicals and advanced materials company with positions in refrigerants, semiconductor materials, protective fibers, and healthcare packaging.
3. Magnum Ice Cream Company N.V. (NYSE:MICC)
Market Cap: $9.7 Billion
Date of Spin-off: 08-Dec-2025
Number of Hedge Fund Holders: N/A
Magnum Ice Cream Company N.V. (NYSE:MICC) is among the spin-off companies in 2025. Unilever PLC’s (NYSE:UL) Ice Cream division, including the Magnum brand, was separated through a demerger (a pro rata spin-off to shareholders) completed on December 6, 2025, with qualifying Unilever shareholders and American Depositary Shares (ADS) holders receiving one MICC Share for every five Unilever Shares or Unilever ADSs, as applicable.
The shares of Magnum Ice Cream Company N.V. (NYSE:MICC) were listed on the exchanges in Amsterdam, London, and New York. While the remaining shareholders will hold 80.1%, the Unilever Group will hold approximately 19.9% of the stake in MICC, which it intends to sell over time to fund transaction costs and provide capital flexibility.
Magnum Ice Cream Company N.V. (NYSE:MICC), which includes brands such as Ben & Jerry’s, Cornetto, and Magnum, is the world’s largest ice cream company. It reported nearly €8.0 billion in revenue in 2024 and accounted for approximately 21% of the global retail ice cream market, making it the largest ice cream company by retail sales worldwide, according to company reports.
While Magnum Ice Cream Company N.V.’s (NYSE:MICC) stock has risen nearly 6% since its listing, Kepler Capital analyst Karel Zoete sees an upside of 3% with his price target of €16.30 as per his latest update on December 19. Despite the low upside, the analyst reiterated a Buy rating on the stock.
Earlier, on December 12, Goldman Sachs analyst Sam Darbyshire initiated coverage of the stock with a Neutral rating and a €16 price target, as he sees limited upside for the shares. He notes that he may turn more positive if the company could improve its margin ahead of expectations.
However, the company’s management appears optimistic about future growth. This was evidenced by MICC CEO Peter Ter Kulve’s comments after the listing on December 8. He stated,
“We have a clear strategy to deliver growth, improve productivity and reinvest in TMICC in line with the medium-term targets we set out at our recent Capital Markets Day. With our iconic brands, world-class capabilities, expert people and the trust of millions of ice cream lovers globally, we aim to lead the frozen snacking revolution, shaping new occasions, innovating new products and fresh ways to delight people around the world, improving the service to our customers and creating value for our shareholders and wider stakeholders. Because life tastes better with ice cream.”
2. Qnity Electronics Inc. (NYSE:Q)
Market Cap: $17.6 Billion
Date of Spin-off: 03-Nov-2025
Number of Hedge Fund Holders: N/A
Qnity Electronics Inc. (NYSE:Q) is among the spin-off companies in 2025. Qnity was formed after its parent company, DuPont de Nemours Inc. (NYSE:DD), decided to separate its Electronics business, which included semiconductor technologies and interconnect solutions, into an independent company. The company accomplished this on November 1, 2025, by distributing all Qnity common stock to DuPont stockholders, who received one share of Qnity for every two shares of DuPont’s common stock.
Since the listing, the stock has declined by approximately 12%, but its outlook appears solid based on analyst sentiment. As of December 26, Qnity Electronics Inc. (NYSE:Q) shares enjoy a consensus Buy status with all 10 analysts covering it assigning a Buy recommendation. Analysts’ estimates yield a 1-year median price target of $109, implying a 30% upside.
In a December 16 initiation note, Oppenheimer called Qnity a “hidden gem,” an overlooked asset within DuPont, and noted that it is now better positioned to unlock value following its separation. The firm provided an example of the successful carve-out of GE Vernova from its “old economy” conglomerate parent, which was later re-rated as a focused infrastructure enabler.
Oppenheimer further highlighted Qnity’s role as a “picks-and-shovels” provider that supplies consumable components for thermal management, EMI shielding, and advanced-node applications. The firm deemed it a beneficiary of accelerating AI infrastructure investment. With that, it believes that Qnity could command a higher valuation if the company executes its growth strategy effectively post-spin. Therefore, Oppenheimer initiated coverage of Qnity Electronics Inc. (NYSE:Q) with an Outperform rating and a $100 price target.
Qnity Electronics Inc. (NYSE:Q) is a materials and technology solutions provider to the semiconductor and electronics industries, enabling advanced computing, smart technologies, and connectivity.
1. Sandisk Corp. (NASDAQ:SNDK)
Market Cap: $36.6 Billion
Date of Spin-off: 24-Feb-2025
Number of Hedge Fund Holders: 61
Sandisk Corp. (NASDAQ:SNDK) tops our list of spin-off companies in 2025 and is also the largest by market cap. The company was a wholly owned subsidiary of Western Digital Corporation (NASDAQ:WDC) and became an independent company following its spin-off, which was completed on February 21, 2025. WDC distributed 80.1% of its stake to its shareholders, who received one-third (1/3) of one share of Sandisk’s common stock for each share of WDC’s common stock held (per the company’s report).
While Western Digital retained 19.9% of Sandisk’s outstanding common stock at the time, it disposed of 14.6% of it on June 6, 2025, through an exchange for WDC debt held by WDC creditors.
Sandisk Corp. (NASDAQ:SNDK) continues to experience strong demand across its data centers, edge, and consumer end-markets. This was corroborated by Benchmark analyst Mark Miller’s December 18 reiteration of a Buy rating on the stock, who noted strong momentum in the NAND flash memory market.
This rating update came shortly after stronger results from another memory semiconductor player, Micron Technology Inc. (NASDAQ:MU), on December 17. Micron reported robust growth across its end markets and raised its 2025 NAND bit demand growth guidance to a high-teens range, up from a low- to mid-teens range previously. Moreover, the company’s capital expenditure plans have been increased to $20 billion, up from $18 billion previously.
BNP Paribas analyst Karl Ackerman also appeared bullish in his December 10 comments in which he opined that the memory sector is entering a “historic upcycle,” and Sandisk as well as Micron are well positioned to benefit from it. He further stated,
“With consumer DRAM and NAND TLC spot prices increasing 408% and 165% Y/Y in November, respectively, we believe we are entering a historic DRAM and NAND upcycle that could span 2026. We continue to favor the memory and storage supply chain, though companies with high data center mix should fare better.”
Sandisk Corp. (NASDAQ:SNDK) is a leading developer, manufacturer, and provider of data storage devices and solutions based on NAND flash technology.
While we acknowledge the potential of SNDK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNDK and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and 11 Best Stocks You’ll Wish You Bought Sooner.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
