SAN JOSE, Calif. - QuickLogic (NASDAQ:QUIK) Corporation (NASDAQ: QUIK), a prominent player in the field of embedded FPGA (eFPGA) IP and Endpoint AI solutions, is poised to become a part of the Russell 3000® Index. The integration into this widely recognized index is slated to take effect with the opening of U.S. equity markets on July 1, 2024, as per the annual reconstitution of the Russell US Indexes.
The Russell US Indexes annually recalibrate to reflect the 4,000 largest U.S. stocks by total market capitalization, as determined on April 30. The inclusion of QuickLogic in the Russell 3000® Index ensures its automatic entry into the small-cap Russell 2000® Index and relevant growth and value style indexes. FTSE Russell, a global index provider, bases index membership on market-capitalization and style attributes.
Brian Faith, CEO of QuickLogic, expressed that the inclusion is a nod to the company's growth and the positive outcomes of its strategic shift initiated in 2020 with the launch of its eFPGA IP business model. Faith underscored the company's commitment to its strategic execution and the opportunity to engage with a wider investor base through this new index membership.
FTSE Russell's indexes serve as benchmarks for approximately $10.5 trillion in assets, highlighting their role as essential tools for investment managers and institutional investors. Fiona Bassett, CEO of FTSE Russell, emphasized the importance of the annual index rebalancing in maintaining accurate benchmarks that reflect the current U.S. economy.
QuickLogic, a fabless semiconductor company, has been at the forefront of developing FPGA technology and AI software through its subsidiary, SensiML Corporation, catering to a diverse range of applications across various sectors. The company's upcoming inclusion in the Russell 3000® Index marks a significant milestone, reflecting its financial performance and market growth.
The information for this article is based on a press release statement from QuickLogic Corporation.
InvestingPro Insights
As QuickLogic Corporation (NASDAQ: QUIK) prepares to join the Russell 3000® Index, a look at the InvestingPro data and tips presents a mixed picture of the company's financial health and market potential.
With a market capitalization of $190.5 million and an impressive one-year price total return of 123.06%, the company's stock has demonstrated significant growth. However, the high P/E ratio of 162.71 suggests that the stock is trading at a premium compared to its earnings, a sentiment echoed by the adjusted P/E ratio for the last twelve months as of Q1 2024, standing at 177.54.
InvestingPro Tips highlight that QuickLogic is expected to see net income growth this year, aligning with the company's optimistic outlook as it joins the Russell 3000® Index. Nonetheless, investors should be aware that two analysts have revised their earnings estimates downwards for the upcoming period, indicating potential concerns about the company's future earnings performance.
While the company's revenue growth has been robust, with a 42.27% increase over the last twelve months as of Q1 2024, the stock's recent volatility is noteworthy. The price has experienced a rollercoaster ride, with an 11.34% return over the last week, but a decline of 13.77% over the past month. Such volatility may attract traders looking for short-term gains but could be a cautionary sign for long-term investors seeking stability.
For those interested in further analysis, InvestingPro offers additional tips on QuickLogic, which can be accessed with a subscription. Readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 15 additional InvestingPro Tips available, investors can gain a deeper understanding of the company's valuation multiples, debt levels, and profitability predictions.
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