Frequency Electronics, Inc. Set to Join Russell 2000 and 3000 Indexes
- Inclusion in Russell 2000 and 3000 indexes increases visibility to institutional investors
- Enhanced access to capital markets and potential increased stock liquidity
- Strong market position in satellite and quantum technologies sectors
- Proven track record with over 100 excellence awards for 150+ space/DOD programs
- None.
Insights
FEIM's Russell indexes inclusion signals institutional recognition, likely boosting liquidity and visibility among investors tracking $10.6T in benchmark assets.
Frequency Electronics' addition to both the Russell 2000 and Russell 3000 indexes represents a significant milestone that will likely enhance the company's market visibility and liquidity. This inclusion, effective June 30, follows FTSE Russell's annual reconstitution process that evaluates the 4,000 largest US stocks based on market capitalization as of April 30.
The Russell indexes aren't merely symbolic designations - they serve as benchmarks for approximately
This development typically creates three tangible benefits for shareholders:
- Increased trading volume and improved share liquidity
- Broader institutional ownership profile
- Enhanced access to capital markets for future funding needs
For a company focused on specialized markets like quantum sensors and satellite technology, this mainstream financial recognition indicates the company has reached a size threshold that places it among the top 3000 US public companies. The timing appears strategic as management highlights their focus on the "proliferated satellite market" and quantum sensor development - suggesting they're positioning themselves at the intersection of two high-growth technology domains.
While index inclusion doesn't change fundamental business operations, it does reduce certain market frictions that can benefit long-term shareholders through potentially lower cost of capital and improved market efficiency in share pricing.
MITCHEL FIELD, N.Y., May 28, 2025 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM), a leading provider of precision timing and frequency control products, is pleased to announce that it has been added as a member of the broad-market Russell 3000 and the small-cap Russell 2000 index, effective after the US market opens on June 30, as part of the 2025 Russell index reconstitution.
Tom McClelland, President and CEO at Frequency Electronics, commented, "Being added to the Russell 2000® Index and Russell 3000® Index represents an important milestone for FEI and reflects our growing impact as we embrace the proliferated satellite market, and advance our quantum sensor technology. This inclusion demonstrates our progress and enhances our visibility among institutional investors at a critical time for satellite and quantum technologies. As we continue executing our mission to transform cutting edge laboratory discoveries into practical products, we are pleased to have achieved this recognition that comes with expanded access to capital markets and increased liquidity for our shareholders."
Annual Russell indexes reconstitution captures the 4,000 largest US stocks as of April 30, ranking them by total market capitalization. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.
Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Approximately
For more information on the Russell 2000® Index and the Russell indexes reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell website.
About Frequency Electronics
Frequency Electronics, Inc. (FEI) is a world leader in the design, development and manufacture of high precision timing, frequency generation and RF control products for space and terrestrial applications. FEI’s products are used in satellite payloads and in other commercial, government and military systems including C4ISR and electronic warfare, missiles, UAVs, aircraft, GPS, secure communications, energy exploration and wireline and wireless networks. FEI-Zyfer provides GPS and secure timing capabilities for critical military and commercial applications; FEI-Elcom Tech provides Electronic Warfare (“EW”) sub-systems and state-of-the-art RF and microwave products. FEI has received over 100 awards of excellence for achievements in providing high performance electronic assemblies for over 150 space and DOD programs. The Company invests significant resources in research and development to expand its capabilities and markets.
www.frequencyelectronics.com
FEI’s Mission Statement: “Our mission is to transform discoveries and demonstrations made in research laboratories into practical, real-world products. We are proud of a legacy which has delivered precision time and frequency generation products, for space and other world-changing applications that are unavailable from any other source. We aim to continue that legacy while adapting our products and expertise to the needs of the future. With a relentless emphasis on excellence in everything we do, we aim, in these ways, to create value for our customers, employees, and stockholders.”
Forward-Looking Statements
The statements in this press release regarding future earnings and operations and other statements relating to the future constitute “forward-looking” statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, our inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, reliance on key customers, continued acceptance of the Company’s products in the marketplace, competitive factors, new products and technological changes, product prices and raw material costs, dependence upon third-party vendors, other supply chain related issues, increasing costs for materials, operating related expenses, competitive developments, changes in manufacturing and transportation costs, the availability of capital, the outcome of any litigation and arbitration proceedings, and failure to maintain an effective system of internal controls over financial reporting. The factors listed above are not exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the Securities and Exchange Commission. The Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2024, filed on August 2, 2024 with the Securities and Exchange Commission includes additional factors that could materially and adversely impact the Company’s business, financial condition and results of operations, as such factors are updated from time to time in our periodic filings with the Securities and Exchange Commission, which are accessible on the Securities and Exchange Commission’s website at www.sec.gov. Moreover, the Company operates in a very competitive and rapidly changing environment. New factors emerge from time to time and it is not possible for management to predict the impact of all these factors on the Company’s business, financial condition or results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this press release and any other public statement made by the Company or its management may turn out to be incorrect. The Company expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| Contact information: | Dr. Thomas McClelland, President and Chief Executive Officer; Steven Bernstein, Chief Financial Officer; | ||
| TELEPHONE: (516) 794-4500 ext.5000 | WEBSITE: www.freqelec.com | ||
FAQ
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