The Oncology Institute joins Russell 2000 and 3000 indexes

Published 03/06/2025, 13:06
The Oncology Institute joins Russell 2000 and 3000 indexes

CERRITOS, Calif. - The Oncology Institute, Inc. (NASDAQ: TOI), a leading group in value-based oncology in the United States with a market capitalization of $290 million, has announced its inclusion in the Russell 2000® and Russell 3000® indexes, effective post-market close on June 27. This move follows the annual reconstitution of the Russell indexes, which was based on a preliminary list of additions released on May 23. According to InvestingPro data, TOI’s stock has shown remarkable momentum, delivering a 951% return year-to-date.

The Russell 3000® Index represents the 4,000 largest U.S. stocks as of April 30, ranked by total market capitalization. Inclusion in this index guarantees automatic entry into either the Russell 1000® or the small-cap Russell 2000® Index, as well as into the corresponding growth and value style indexes. TOI’s inclusion comes as the company trades near its 52-week high of $3.50, with InvestingPro analysis suggesting the stock is slightly undervalued based on its Fair Value calculations.

Daniel Virnich, CEO of The Oncology Institute, expressed enthusiasm about the inclusion, stating it as a significant milestone in the company’s growth journey. He noted that this development is a testament to their value-based approach to cancer care and their commitment to improving patient outcomes while also creating value for shareholders. The company’s growth trajectory is evident in its 17.64% revenue growth over the last twelve months.

The Russell indexes, managed by global index provider FTSE Russell, are critically observed by investment managers and institutional investors for use in index funds and as benchmarks for various investment strategies. Approximately $10.6 trillion in assets were benchmarked against these indexes as of June 2024.

The Oncology Institute, founded in 2007, has been at the forefront of providing specialized cancer care through a value-based model. The company serves a large patient population, offering advanced treatments and services, including clinical trials and transfusions, across more than 70 clinic locations.

The information for this article is based on a press release statement.

In other recent news, The Oncology Institute reported its financial results for the first quarter of 2025, showing a notable revenue increase but a loss in earnings per share (EPS). The company’s revenue rose by 10.3% year-over-year, reaching $104.4 million, although the EPS fell short of expectations at -$0.21. Despite this, The Oncology Institute improved its adjusted EBITDA and free cash flow compared to the previous year, reaffirming its full-year 2025 guidance. Additionally, BTIG initiated coverage on The Oncology Institute with a Buy rating and a price target of $7.00, noting the company’s unique business model and potential growth in capitated and managed care contracts. BTIG analysts highlighted the high margins associated with capitated contracts and anticipated an increase in fee-for-service revenue as the year progresses. The Oncology Institute’s strategic focus on expanding its capitation contracts in new markets, such as Florida and Nevada, is expected to contribute significantly to its revenue. The company also aims for profitability and cash flow positivity by the end of 2025, with positive adjusted EBITDA projected for the fourth quarter.

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