KKR, CrowdStrike, and GoDaddy Gain on S&P 500 Inclusion

Shares of private equity firm KKR (KKR), cybersecurity company CrowdStrike Holdings (CRWD), and domain registrar GoDaddy (GDDY) advanced Monday on word they would be added to the S&P 500.

S&P Dow Jones Indices on Friday announced the three firms would be put in the prestigious index before the start of trading on June 24. They will be replacing human resources consulting firm Robert Half (RHI), Texas-based bank Comerica (CMA), and genetic analysis company Illumina (ILMN). Shares of those firms declined Monday.

S&P Dow Jones Indices also shuffled the lineup of its S&P MidCap 400 and S&P SmallCap 600 indexes. It said the changes coincided with its quarterly rebalance, and that they “ensure each index is more representative of its market capitalization range.” S&P Dow Jones added that KKR, CrowdStrike, and GoDaddy “are more representative of the large-cap market space.”

Being included in the S&P 500 can be quite beneficial to a company’s stock, as it helps lift name recognition and allows it to be part of exchange-traded funds (ETFs) and funds that track the index. That could drive demand and a short-term rise in price.

Supermicro Hit All-Time High After Last S&P 500 Rebalancing

In the last rebalancing back in early March, S&P reported that it was adding Super Micro Computer, also known as Supermicro (SMCI), and its shares soared to an all-time high shortly thereafter.

As of 10:10 a.m. ET Monday, shares of KKR were up 10.7%, Crowdstrike 8.7%, and GoDaddy 1.8%.