PharmAthene, Inc. (NYSEMKT: PIP) is set to join Russell 3000 Index effective today June 27. The development is expected to increase the exposure of PharmAthene to institutional investors and investment managers. PharmAthene’s admission into Russell 3000 Index comes after the broad-market index concluded its annual reconstitution.
4,000 largest U.S. stocks
The Russell indexes are reorganized every year and members are added or dropped based on their market cap as of May. The reconstituted Russell US Index captures 4,000 largest stocks in the U.S. and those stocks are ranked on the basis of their market cap.
After PharmAthene, Inc. (NYSEMKT: PIP) joins the Russell 3000 Index, it will retain its members in the index for a whole year. Companies that are included in Russell 3000 Index are automatically added to Russell 1000 Index or Russell 2000 Index, which reflect large-cap and small-cap members, respectively. Besides the market cap based indexes, Russell 3000 Index members also get grouped into other indexes based on growth and value style.
It is worth pointing out that inclusion into the FTSE-based Russell index is determined by market cap, style attributes and objective.
Increased investor exposure
Russell US indexes benchmark close to $6 trillion worth of assets. Institutional investors and investment managers used the FTSE-based Russell indexes to for benchmarking. That explains why stocks added to the indexes such as PharmAthene in this case will enjoy increased investor exposure, potentially easing the pain of fundraising when there is a need for it.
PharmAthene, Inc. (NYSEMKT: PIP) recently announced that shareholders elected six directors to serve on its board. Those newly-elected directors will retain their positions until the next annual shareholder meeting and until their successors are duly elected and qualified.
Wall Street comments for PharmAthene, Inc. (NYSEMKT: PIP)
Comments from Wall Street regarding PharmAthene, Inc. (NYSEMKT: PIP) have mostly been positive in the recent times. Analysts at Aegis Capital reiterated their BUY rating on the stock and issued a price target of $6 on it. Nobel Financial analysts also issued a BUY rating on PIP and set a price target of $6.