First Advantage to Replace Kennedy-Wilson in S&P SmallCap 600 Index
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: seekingalpha
- Index Component Change: First Advantage will replace Kennedy-Wilson Holdings in the S&P SmallCap 600 prior to trading on June 16, indicating an increase in its recognition within the small-cap market, which is expected to attract more investor attention.
- Acquisition Dynamics: Kennedy-Wilson Holdings is undergoing an acquisition led by its CEO in partnership with Fairfax Financial Holdings, with the deal expected to close soon, impacting its market performance and shareholder structure.
- Market Reaction Anticipation: The inclusion of First Advantage may enhance its liquidity and market visibility, potentially driving its stock price up, reflecting market confidence in its future growth potential.
- Strategic Implications: This index adjustment not only elevates First Advantage's market position but may also prompt other small companies to focus on their performance within S&P indices, thereby influencing the dynamics of the entire small-cap market.
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Analyst Views on FA
Wall Street analysts forecast FA stock price to rise
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 16.710
Low
17.00
Averages
17.33
High
18.00
Current: 16.710
Low
17.00
Averages
17.33
High
18.00
About FA
First Advantage Corporation is a software and data company. The Company provide comprehensive, end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. Its product suite enables customers across industries to perform pre-onboarding screening and post-onboarding monitoring of employees, contractors, contingent workers, and drivers. Its pre-onboarding products include criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, healthcare credentials, executive screening and others. Its post-onboarding solutions include criminal records monitoring, healthcare sanctions, motor vehicle records, social media and global sanctions and licenses, and others. Its adjacent products include fleet and vehicle compliance, hiring tax credits and incentives, and investigative research.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Advantage Added to S&P SmallCap 600 Index
- Stock Price Surge: First Advantage's shares rose nearly 6% on Friday, closing at $16.49, significantly outperforming the S&P 500's 0.5% gain, reflecting market optimism about its future performance.
- Index Inclusion: S&P Global announced that First Advantage will replace the acquired Kennedy-Wilson Holdings in the S&P SmallCap 600 Index, effective next Tuesday, enhancing the company's market visibility.
- Market Reaction: Investors typically get excited about inclusion in major stock indices, making First Advantage an instant target for numerous index funds, which could further drive its stock price up, although this does not directly affect the company's fundamentals.
- Growth Potential: First Advantage's recently released Q1 results showed double-digit growth in key metrics, and the index inclusion provides additional momentum to attract more investors, further solidifying its market position in employment verification.
See More
First Advantage to Join S&P SmallCap 600 Index
- Index Change Impact: First Advantage (NASDAQ: FA) will replace Kennedy-Wilson Holdings in the S&P SmallCap 600 Index next Tuesday, enhancing its market visibility and attracting more investor attention.
- Stock Price Surge: Following its inclusion in this significant index, First Advantage's shares rose nearly 6% on Friday, significantly outperforming the S&P 500's 0.5% gain, indicating optimistic market expectations for its future performance.
- Investor Sentiment Boost: Inclusion in an index typically excites investors, making First Advantage a target for many index funds; while this does not directly affect the company's fundamentals, it may lead to increased capital inflow.
- Market Competition Analysis: Despite First Advantage's impressive performance, analysts note that the company did not make the Motley Fool Stock Advisor's list of the top 10 stocks, suggesting that investors should carefully consider its long-term potential before making decisions.
See More
First Advantage Added to S&P SmallCap 600 Index
- Stock Price Surge: First Advantage (FA) shares jumped 8.5% in morning trading after being announced for inclusion in the S&P SmallCap 600 index, which is expected to enhance market demand and investor visibility.
- Index Impact: The inclusion will take effect before market opening on June 16, replacing Kennedy-Wilson Holdings Inc., meaning index-tracking funds will be required to buy FA shares, driving up the stock price.
- Performance Volatility: FA's stock has been very volatile, with 24 moves greater than 5% over the past year; while today's increase is seen as significant, it does not fundamentally alter market perceptions of the company.
- Annual Outlook: In its Q4 2025 report, FA posted revenue of $420 million, a 36.8% increase year-over-year, exceeding Wall Street forecasts, with full-year revenue guidance of $1.66 billion indicating strong growth potential.
See More
First Advantage to Replace Kennedy-Wilson in S&P SmallCap 600 Index
- Index Component Change: First Advantage will replace Kennedy-Wilson Holdings in the S&P SmallCap 600 prior to trading on June 16, indicating an increase in its recognition within the small-cap market, which is expected to attract more investor attention.
- Acquisition Dynamics: Kennedy-Wilson Holdings is undergoing an acquisition led by its CEO in partnership with Fairfax Financial Holdings, with the deal expected to close soon, impacting its market performance and shareholder structure.
- Market Reaction Anticipation: The inclusion of First Advantage may enhance its liquidity and market visibility, potentially driving its stock price up, reflecting market confidence in its future growth potential.
- Strategic Implications: This index adjustment not only elevates First Advantage's market position but may also prompt other small companies to focus on their performance within S&P indices, thereby influencing the dynamics of the entire small-cap market.
See More
First Advantage FA Q1 2026 Earnings Transcript
See More
First Advantage Reports Strong Q1 2026 Earnings with 8.6% Revenue Growth
- Significant Revenue Growth: First Advantage reported Q1 revenue of $385 million, reflecting an 8.6% year-over-year increase that exceeded expectations, demonstrating strong demand and execution in the identity solutions market, thereby solidifying its competitive position.
- Improved Adjusted EBITDA Margins: The company achieved an adjusted EBITDA of $105 million with a margin of 27.3%, representing a 130 basis point improvement from the prior year, indicating effective cost control and synergy realization that enhance profitability.
- Share Repurchase Program: During Q1, First Advantage executed $19.5 million in share repurchases as part of its $100 million buyback plan, showcasing management's confidence in the company's value while also actively managing debt repayment to optimize its capital structure.
- Optimistic Outlook: Management reaffirmed its full-year 2026 guidance, anticipating mid- to high single-digit revenue growth rates in Q2 and Q3, although a slight decline is expected in Q4, reflecting a cautious approach to market dynamics.
See More
First Advantage Added to S&P SmallCap 600 Index
- Stock Price Surge: First Advantage's shares rose nearly 6% on Friday, closing at $16.49, significantly outperforming the S&P 500's 0.5% gain, reflecting market optimism about its future performance.
- Index Inclusion: S&P Global announced that First Advantage will replace the acquired Kennedy-Wilson Holdings in the S&P SmallCap 600 Index, effective next Tuesday, enhancing the company's market visibility.
- Market Reaction: Investors typically get excited about inclusion in major stock indices, making First Advantage an instant target for numerous index funds, which could further drive its stock price up, although this does not directly affect the company's fundamentals.
- Growth Potential: First Advantage's recently released Q1 results showed double-digit growth in key metrics, and the index inclusion provides additional momentum to attract more investors, further solidifying its market position in employment verification.
See More
First Advantage to Join S&P SmallCap 600 Index
- Index Change Impact: First Advantage (NASDAQ: FA) will replace Kennedy-Wilson Holdings in the S&P SmallCap 600 Index next Tuesday, enhancing its market visibility and attracting more investor attention.
- Stock Price Surge: Following its inclusion in this significant index, First Advantage's shares rose nearly 6% on Friday, significantly outperforming the S&P 500's 0.5% gain, indicating optimistic market expectations for its future performance.
- Investor Sentiment Boost: Inclusion in an index typically excites investors, making First Advantage a target for many index funds; while this does not directly affect the company's fundamentals, it may lead to increased capital inflow.
- Market Competition Analysis: Despite First Advantage's impressive performance, analysts note that the company did not make the Motley Fool Stock Advisor's list of the top 10 stocks, suggesting that investors should carefully consider its long-term potential before making decisions.
See More
First Advantage Added to S&P SmallCap 600 Index
- Stock Price Surge: First Advantage (FA) shares jumped 8.5% in morning trading after being announced for inclusion in the S&P SmallCap 600 index, which is expected to enhance market demand and investor visibility.
- Index Impact: The inclusion will take effect before market opening on June 16, replacing Kennedy-Wilson Holdings Inc., meaning index-tracking funds will be required to buy FA shares, driving up the stock price.
- Performance Volatility: FA's stock has been very volatile, with 24 moves greater than 5% over the past year; while today's increase is seen as significant, it does not fundamentally alter market perceptions of the company.
- Annual Outlook: In its Q4 2025 report, FA posted revenue of $420 million, a 36.8% increase year-over-year, exceeding Wall Street forecasts, with full-year revenue guidance of $1.66 billion indicating strong growth potential.
See More
First Advantage to Replace Kennedy-Wilson in S&P SmallCap 600 Index
- Index Component Change: First Advantage will replace Kennedy-Wilson Holdings in the S&P SmallCap 600 prior to trading on June 16, indicating an increase in its recognition within the small-cap market, which is expected to attract more investor attention.
- Acquisition Dynamics: Kennedy-Wilson Holdings is undergoing an acquisition led by its CEO in partnership with Fairfax Financial Holdings, with the deal expected to close soon, impacting its market performance and shareholder structure.
- Market Reaction Anticipation: The inclusion of First Advantage may enhance its liquidity and market visibility, potentially driving its stock price up, reflecting market confidence in its future growth potential.
- Strategic Implications: This index adjustment not only elevates First Advantage's market position but may also prompt other small companies to focus on their performance within S&P indices, thereby influencing the dynamics of the entire small-cap market.
See More
First Advantage FA Q1 2026 Earnings Transcript
See More
First Advantage Reports Strong Q1 2026 Earnings with 8.6% Revenue Growth
- Significant Revenue Growth: First Advantage reported Q1 revenue of $385 million, reflecting an 8.6% year-over-year increase that exceeded expectations, demonstrating strong demand and execution in the identity solutions market, thereby solidifying its competitive position.
- Improved Adjusted EBITDA Margins: The company achieved an adjusted EBITDA of $105 million with a margin of 27.3%, representing a 130 basis point improvement from the prior year, indicating effective cost control and synergy realization that enhance profitability.
- Share Repurchase Program: During Q1, First Advantage executed $19.5 million in share repurchases as part of its $100 million buyback plan, showcasing management's confidence in the company's value while also actively managing debt repayment to optimize its capital structure.
- Optimistic Outlook: Management reaffirmed its full-year 2026 guidance, anticipating mid- to high single-digit revenue growth rates in Q2 and Q3, although a slight decline is expected in Q4, reflecting a cautious approach to market dynamics.
See More
