Neonode Set to Join Russell 2000® Index

Rhea-AI Summary

Neonode Inc. (NASDAQ: NEON), a touch technology and optical sensing solutions provider, will be added to the Russell 2000 Index effective June 30, 2025, as part of the annual index reconstitution. The company, which has been listed on NASDAQ since 2012, will gain membership in the broad-market Russell 3000 Index and corresponding growth and value indexes. This inclusion is significant as approximately $10.6 trillion in assets are benchmarked against Russell US indexes as of June 2024. The Russell indexes, managed by FTSE Russell, are widely used by investment managers and institutional investors for index funds and active investment strategies. CEO Daniel Alexus welcomed the enhanced visibility this brings to Neonode within the investment community.

Positive

• Inclusion in Russell 2000 Index increases visibility to institutional investors and investment managers
• Automatic inclusion in corresponding growth and value indexes expands market exposure
• Benefits from association with Russell indexes which benchmark approximately $10.6 trillion in assets
• Demonstrates company's growth and market cap achievement to qualify for the index

Negative

• None.

Insights

Financial Index Specialist

Neonode's Russell 2000 inclusion will boost institutional visibility and liquidity, potentially attracting passive fund investments.

Neonode's upcoming addition to the Russell 2000 Index represents a significant milestone for this touch technology and optical sensing solutions provider. The inclusion, effective June 30, comes with several meaningful implications for the company and its shareholders.

Being added to the Russell 2000 brings automatic investment from the approximately $10.6 trillion in assets benchmarked against Russell US indexes. This mechanical buying pressure typically comes from index funds and ETFs that must purchase shares to maintain accurate index tracking, potentially providing support for the stock price.

Beyond the immediate trading impact, Russell 2000 membership delivers enhanced institutional visibility - a crucial benefit for smaller companies like Neonode that may otherwise struggle to attract analyst coverage and institutional investor attention. This increased visibility can lead to improved trading liquidity and potentially more stable price action.

The inclusion also serves as a validation mechanism since Russell index membership is determined objectively through market capitalization rankings. For Neonode, which has been NASDAQ-listed since 2012, this represents recognition of its market position and growth within the competitive technology landscape.

It's worth noting that Russell index reconstitution happens annually (though moving to semi-annual from 2026), so Neonode will need to maintain its market capitalization to retain its position. The company's leadership appears to view this inclusion as a stepping stone toward their stated goals of "innovation leadership and sustainable business growth," providing a foundation for communicating their progress to a potentially wider investor audience.

STOCKHOLM, June 3, 2025 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) (the "Company" or "Neonode") will be added as a member of the U.S. small-cap Russell 2000 Index, effective after the U.S. market opens on June 30 as part of the 2025 Russell indexes reconstitution. Neonode, a provider of touch technology and optical sensing solutions for technologically demanding and regulated industries, debuted on the NASDAQ stock exchange in 2012 under the stock ticker symbol "NEON."

Membership in the Russell 2000 Index, which remains in place for one year, is based on membership in the broad-market Russell 3000® Index. Neonode's stock will also be automatically added to the appropriate growth and value indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes. The Russell US Indexes can be used as performance benchmarks, or as the basis for index-linked products including index tracking funds, derivatives and Exchange Traded Funds (ETFs).

"Our inclusion in the Russell 2000 Index is an encouraging milestone for Neonode as we position ourselves for future success. We welcome the enhanced visibility it gives us within the investor community and look forward to sharing our progress as we continue our journey toward innovation leadership and sustainable business growth," says Daniel Alexus, President and Chief Executive Officer at Neonode.

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to the data as of the end of June 2024, about $10.6 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell, the global index provider.

"The Russell indexes have continuously adapted to the evolving dynamic US economy, and it's crucial to fully recalibrate the suite of Russell US Indexes, ensuring the indexes maintain an accurate representation of the market. The transition to a semi-annual reconstitution frequency from 2026 will ensure our indexes continue to represent the market and maintain the purpose of the index as a portfolio benchmark," comments Fiona Bassett, CEO of FTSE Russell, an LSEG Business.

For more information on the Russell 2000 Index and the Russell indexes reconstitution, go to the "Russell Reconstitution" section on the FTSE Russell website.

For more information, please contact:

Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09

President and Chief Executive Officer
Pierre Daniel Alexus
E-mail: daniel.alexus@neonode.com
Phone: +46 767 60 29 90

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View original content:https://www.prnewswire.com/news-releases/neonode-set-to-join-russell-2000-index-302472012.html

SOURCE Neonode

FAQ

When will Neonode (NEON) join the Russell 2000 Index?

Neonode will join the Russell 2000 Index effective June 30, 2025, as part of the 2025 Russell indexes reconstitution.

What does Neonode's inclusion in the Russell 2000 Index mean for investors?

The inclusion provides increased visibility to institutional investors, as approximately $10.6 trillion in assets are benchmarked against Russell US indexes, potentially increasing trading volume and institutional interest.

What business does Neonode (NEON) operate in?

Neonode is a provider of touch technology and optical sensing solutions for technologically demanding and regulated industries.

How long will Neonode remain in the Russell 2000 Index?

Membership in the Russell 2000 Index remains in place for one year, subject to the next reconstitution.

When did Neonode (NEON) first list on NASDAQ?

Neonode debuted on the NASDAQ stock exchange in 2012 under the stock ticker symbol NEON.