Bio-Path Holdings Inc. (NASDAQ: BPTH) is set to join Russell 3000 Index effective today June 27. The company announced its schedule of joining the index last week. The Russell US Indexes are reconstituted annually.
Joining Russell 3000 Index is expected to elevate the profile of Bio-Path Holdings Inc (NASDAQ:BPTH). The move also recognizes the efforts the management has put into bringing the company to the point it has reached. For investors, the development is a signal that the best could be awaiting BPTH in the future.
The Russell US Indexes comprise of 4,000 largest U.S. stocks based on their standing as of May of every year. The ranking is based on the total market cap of the selected companies.
When a company is selected to join Russell 3000 Index, it retains its place for a period of one year. Those companies also automatically get included in either the large-cap Russell 1000 Index or the small-cap Russell 2000 Index. Companies joining Russell also get included into other indexes outside those based on market cap.
According to a press release by Bio-Path Holdings Inc. (NASDAQ: BPTH), the FTSE-based Russell indexes are determined based on factors that include market cap ranking, objective and style attributes.
BPTH hopes to enjoy increased exposure to potential large investors when it joins Russell 3000 Index. For example, FTSE-based Russell indexes are used by institutional investors and investment managers as benchmarks for investment strategies. The Russell US indexes are estimated to benchmark about $6 trillion.
Wall Street comments on BPTH
Several analysts have recently commented positively on the stock of Bio-Path Holdings Inc (NASDAQ: BPTH). The analysts at Maxim Group reiterated a BUY rating on the stock with a price target of $5, indicating a significant upside potential from the current price level of the stock.
The stock of BPTH also received a BUY rating and price target of $5 from the analysts at Rodman & Renshaw.
Bio-Path Holdings Inc. (NASDAQ: BPTH) finished 1Q2016 with cash and equivalents of $6.47 million, nearly half $12.45 million in the comparable quarter a year earlier.
The company posted EPS loss of $0.02.