SALT LAKE CITY - Sera Prognostics Inc (NASDAQ:SERA)., a company specializing in pregnancy biomarker information, has been confirmed for inclusion in the Russell Small-Cap 2000 and Russell 3000 indexes. This development, announced today, is part of the annual reconstitution of the Russell indexes, which ranks the 4,000 largest US stocks by market capitalization.
The inclusion in these indexes is a significant event for Sera Prognostics, known as The Pregnancy Company® and traded on the Nasdaq under the ticker SERA. The Russell 3000® Index represents the entire US market in a single framework and includes the largest 3,000 companies. Being listed means Sera Prognostics will also be automatically included in either the Russell 1000® or Russell 2000® Index as well as relevant growth and value style indexes.
Zhenya Lindgardt, President and CEO of Sera Prognostics, expressed optimism about the company's trajectory, stating that the inclusion marks progress in a year expected to be filled with milestones aimed at enhancing maternal and neonatal healthcare.
FTSE Russell, a leading global index provider, determines membership for its indexes based on objective market-capitalization rankings and style attributes. The indexes are commonly used by investment managers and institutional investors for creating index funds and as benchmarks for active investment strategies. Approximately $10.5 trillion in assets were benchmarked against the Russell US indexes as of December 2023.
Sera Prognostics is dedicated to improving the health of women and babies by offering early and precise pregnancy care. Their PreTRM® Test is a blood-based biomarker test that predicts the risk of spontaneous preterm birth, allowing for earlier interventions in higher-risk pregnancies.
Preterm birth, defined as birth before 37 weeks' gestation, is a leading cause of illness and death in newborns in the United States, with more than one in ten infants born prematurely. The health care costs associated with managing complications of prematurity were estimated at approximately $25 billion in 2016.
The announcement of Sera Prognostics' addition to the Russell indexes is based on a press release statement and reflects the company's ongoing efforts to advance its diagnostic tests and contribute to better healthcare outcomes for mothers and newborns.
InvestingPro Insights
As Sera Prognostics Inc. celebrates its inclusion in the Russell indexes, it's worth taking a closer look at the company's financial health and market performance through the lens of InvestingPro. Despite the optimism shared by the company's leadership, InvestingPro Tips indicate that Sera Prognostics holds more cash than debt, which can be a positive sign of financial stability. However, analysts are not expecting the company to be profitable this year, and the stock has seen a decline over the last month.
The market has rewarded Sera Prognostics with a substantial return over the last year, as the company's stock price has surged 152.92%. This impressive performance is reflected in the six-month price total return, which shows an astonishing 334.67% increase. Nonetheless, with a current market capitalization of $282.46M, the company is trading at a high revenue valuation multiple, which could suggest that the stock price is quite optimistic relative to its revenue generation.
InvestingPro data further reveals a challenging financial landscape for Sera Prognostics. With a negative P/E Ratio of -8.07 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -7.99, profitability remains a concern. Moreover, the company's revenue has contracted by 37.58% over the last twelve months as of Q1 2024, emphasizing the need for a strategic pivot to stimulate growth.
For investors seeking a deeper dive into Sera Prognostics' performance and potential, there are additional InvestingPro Tips available at https://www.investing.com/pro/SERA. And for those looking to subscribe to InvestingPro for more detailed insights, remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 9 total tips listed on InvestingPro, investors can gain a comprehensive understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.