1. SWI will be removed from the S&P SmallCap 600 effective April 16. 2. Enact Holdings will replace SWI in the same index. 3. Turn/River Capital is acquiring SWI, pending closing conditions. 4. This change impacts SWI's index-tracking investments significantly. 5. SWI transitions from SmallCap index, altering its market perception.
Removal from a recognized index typically leads to decreased visibility and investor interest, historically resulting in stock price declines. Companies like SWI have faced negative price impacts after similar removals, as tracked institutional investments may withdraw.
The article outlines significant changes affecting SWI's market position, indicating a direct financial impact due to index removal and acquisition news. The M&A aspect may signal a strategic shift but also creates uncertainty during the transition.
Immediate selling pressure may occur prior to the index removal date as traders position themselves. Typically, significant volatility arises around such index changes, influencing the stock prices swiftly, especially for small-cap stocks.
/PRNewswire/ -- Enact Holdings Inc. (NASD: ACT) will replace SolarWinds Corp. (NYSE: SWI) in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, April 16. Turn/River Capital is acquiring SolarWinds in a deal expected to close soon, pending final closing conditions.
| Effective Date | Index Name | Action | Company Name | Ticker | GICS Sector |
|---|---|---|---|---|---|
| April 16, 2025 | S&P SmallCap 600 | Addition | Enact Holdings | ACT | Financials |
| April 16, 2025 | S&P SmallCap 600 | Deletion | SolarWinds | SWI | Information Technology |
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