Pareteum Corp (NASDAQ: TEUM) is up big this morning, with gains of more than 16% early on. The gains come after the company announced that it will be joining the Russell 3000 index.
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TEUM Joins Russell 30000
In a press release issued early this morning, Pareteum said that it is set to join the Russell Index. The company said that its joining will take place at the conclusion of the Russell Indexes annual reconstitution. This reconstitution takes place on July 1, 2019.
In a statement, Hal Turner, Chairman and CEO at TEUM, had the following to offer:
Inclusion in the Russell 3000 Index is a reflection of the strong customer growth, execution and financial performance that has characterized Pareteum during the past year. This uplift from last year’s inclusion in the Russell Microcap Index to the Russell 3000 will further expand awareness of Pareteum among institutional investors and for all of our stakeholders. We intend to continue to deliver strong growth and are focused on capitalizing on the very large global opportunities before us which will result in building significant shareholder value over time.
About Russell Indexes
The annual Russell indexes include 4,000 of the largest stocks in the United States, ranking them by market cap. Importantly, the company’s membership in the Russell 3000 index will remain in place for a minimum of 1 year.
This membership gives the companies automatic inclusion in the large-cap Russell 1000 or the small-cap Russell 2000 Index. Membership also gives the company an entrance into the appropriate growth and value style indexes.
Why This News Is So Important
Ultimately, this is incredible news for TEUM. After all, Russell indexes are used widely across the investing industry. In particular, investment managers and institutional investors pay close attention to the index for index funds and as a benchmark for active investment strategies.
In fact, estimates suggest that around $9 trillion in assets are benchmarked against Russell’s United States indexes. Moreover, Russell indexes are part of the FTSE Russell, which is a leading global index provider.
As a result of its inclusion in the Russell index, Pareteum will gain a wide investing audience, likely leading to strong gains in the value of the stock ahead.
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Final Thoughts
TEUM is rapidly growing, catching the attention of not only the Russell indexes, but investors alike. With today’s news, the investing community’s awareness of the company is only likely to grow, setting the stage for more strong gains ahead.
What Do You Think?
Where do you think TEUM is headed moving forward? Join the discussion in the comments below!