SAN DIEGO - Modular Medical, Inc. (NASDAQ:MODD), an insulin delivery technology company currently in development stage, is slated to be included in the Russell Microcap Index starting July 1, 2024. This incorporation will automatically enroll the company in the appropriate growth and value style indexes for one year.
The Russell Microcap Index is a segment of the Russell indexes, which are utilized by investment managers and institutional investors for creating index funds and as benchmarks for various investment strategies. These indexes are part of FTSE Russell, a global index provider, with around $10.6 trillion in assets benchmarked against them.
Modular Medical's potential inclusion in the index follows the annual reconstitution of the Russell indexes, which is based on market-capitalization rankings and style attributes. The company's mission is focused on enhancing the accessibility of advanced glycemic control for people with diabetes by offering insulin delivery solutions that are both user-friendly and cost-effective.
The company was founded by Paul DiPerna, who is known for his previous work as the founder of Tandem Diabetes and the inventor of the t:slim insulin pump. Modular Medical aims to simplify the process of insulin delivery without compromising on quality, targeting a broader range of users beyond those considered "superusers."
The news of Modular Medical's forthcoming entry into the Russell Microcap Index is based on a press release statement and reflects the company's growth and recognition in the financial markets.
InvestingPro Insights
As Modular Medical, Inc. (NASDAQ:MODD) prepares for its inclusion in the Russell Microcap Index, a closer look at the company's financial health and market performance can offer additional insights. According to InvestingPro data, the company's market capitalization stands at a modest $50.51 million. Despite this, the company's Price / Book ratio as of the last twelve months ending Q3 2024 is at a high 13.14, which suggests a premium valuation compared to the book value of its assets.
InvestingPro Tips highlight some key challenges for the company. Modular Medical is currently grappling with weak gross profit margins and has not been profitable over the last twelve months. Analysts are also not expecting the company to turn a profit this year.
Moreover, while the company operates with a moderate level of debt, it is quickly burning through cash, which could be a concern for potential investors. These factors are essential to consider when evaluating the company's potential for long-term growth and sustainability.
Despite these challenges, the company has shown a strong return over the last five years, indicating resilience and potential for recovery. It is also worth noting that Modular Medical does not pay a dividend, which is not uncommon for companies in the development stage focusing on growth and reinvestment. For those interested in a deeper analysis, InvestingPro offers additional tips on Modular Medical, and users can take advantage of an exclusive offer by using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors looking to leverage these insights can find further detailed analysis and tips on Modular Medical at https://www.investing.com/pro/MODD, with an additional 6 tips available to help inform investment decisions.
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