HOUSTON - Drilling Tools International Corp. (NASDAQ: DTI), an oilfield services company specializing in drilling tools for horizontal and directional drilling operations, is poised to join several Russell indexes following their annual reconstitution. The company anticipates inclusion in the Russell 2000®, Russell 2500®, Russell 3000®, Russell Small Cap Completeness® Index, and Russell Microcap® Index at the end of June.
This inclusion is scheduled to take effect after equity markets close on June 28, 2024, with DTI expected to commence trading as part of these indexes at the opening of equity markets on the following Monday.
Wayne Prejean, CEO of DTI, expressed the company's honor at the prospect of being added to these indexes, highlighting it as an acknowledgment of the company's robust foundation and performance. As DTI approaches its first anniversary as a publicly-traded entity, Prejean anticipates that this development will enhance the company's visibility among investment managers and institutional investors.
The Russell indexes, administered by FTSE Russell, are recalibrated each June to reflect the evolving U.S. equity market landscape. They serve as benchmarks for investment strategies and are used for index funds by investment managers and institutional investors worldwide. The Russell 2000 Index, in particular, measures the performance of the small-cap segment of U.S. equity markets and is a subset of the larger Russell 2500 and 3000 indexes.
FTSE Russell, a global index leader, offers benchmarking, analytics, and data solutions for investors in over 70 countries. With $20.1 trillion benchmarked to its indexes, FTSE Russell upholds a transparent, rules-based methodology for index design and management.
Drilling Tools International, based in Houston, Texas, has been manufacturing and renting downhole drilling tools since 1984. With an expansive presence in North America, Europe, and the Middle East, DTI has established itself as a significant player in the oilfield services industry.
The company's projected inclusion in the Russell indexes is based on a press release statement and should be considered in light of the forward-looking nature of such announcements. These statements are inherently subject to risks, uncertainties, and factors beyond the company's control, and actual results may differ materially from those projected.
In other recent news, Drilling Tools International Corp. has significantly bolstered its financial position by securing $105 million in financing. This has been achieved through an amendment to its existing credit facility and the procurement of a new term loan.
The company's Senior Secured Asset-Based Revolving Credit Facility with PNC Business Credit has been increased from $60 million to $80 million, with an extended maturity date to March 2029. Concurrently, a new $25 million term loan with PNC has been secured, aimed at supporting the company's growth initiatives.
These recent developments, according to DTI's Chief Financial Officer David Johnson, provide favorable terms for the company's international expansion and merger and acquisition strategies. The transactions were advised legally by Winston & Strawn for DTI and Holland & Knight for PNC Business Credit.
InvestingPro Insights
As Drilling Tools International Corp. (NASDAQ: DTI) gears up for its inclusion in several Russell indexes, a closer look at some key metrics and insights from InvestingPro could provide potential investors with a clearer picture of the company's financial health and market performance.
InvestingPro Data shows that DTI has a market capitalization of $175.34 million, which places it well within the range for consideration in the Russell indexes catered to smaller companies. The company's Price/Earnings (P/E) ratio stands at a solid 14.54, reflecting investor expectations of earnings growth, with an adjusted P/E ratio for the last twelve months as of Q1 2024 slightly lower at 14.0. This adjustment indicates a consistent valuation over the recent period. DTI's Gross Profit Margin is notably high at 76.64%, suggesting that the company is effective at controlling its cost of goods sold and generating sales revenue.
The company has also experienced significant market momentum, as evidenced by a substantial 96.33% return over the last three months. This impressive short-term growth could be a sign of strong investor confidence and market recognition of DTI's potential, aligning with the company's operational achievements and strategic positioning.
InvestingPro Tips highlight that DTI operates with a moderate level of debt and has liquid assets that exceed short-term obligations, which may provide the company with financial flexibility and stability. Additionally, analysts predict that the company will be profitable this year, which is consistent with DTI being profitable over the last twelve months. These factors, combined with the company's strong return over the past quarter, can be particularly appealing to investors looking for financially sound companies with positive growth prospects.
For investors seeking to delve deeper into DTI's financials and market performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/DTI. These tips can provide further insights into the company's operations and future outlook. Moreover, by using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable analysis and data to inform their investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.