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March 17, 2021, 10:38 a.m. EDT

16 small-cap stocks that could get a boost from ETF buying

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Andrea Riquier

The Russell family of indexes will add several newly-public companies in March, at which point exchange-traded funds that track the indexes will need to buy shares in those companies. That buying activity could provide a boost to share prices, according to an analysis from Jefferies.

“A number of names could see decent tailwind,” the Jefferies analysts wrote. Those 16 stocks are in the table below, along with the number of days over which Jefferies calculates they will see buying pressure.

There are some caveats.

“We are adding to the growing list of concerns regarding small-cap performance moving too far, too fast,” the analysts explain.

As of Friday’s open, the Russell 2000 /zigman2/quotes/210598147/delayed RUT +0.25% is up 8.7% in the year to date, compared to a flat showing for the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.36% and a negative one for the Nasdaq /zigman2/quotes/210598365/realtime COMP +0.10% .

What’s more, companies have been rushing to go public at a pace not seen since 1997 — eclipsing even the 1999-2000 dot-com bubble.

“When the IPO calendar has been this hot in the past, performance has cooled,” Jefferies wrote. “We don’t see negative performance but Small does tend to lag over the subsequent 6 and 12 months as investors digest the new names.”

Company and ticker Days to buy
Midwest Holding Inc. /zigman2/quotes/202264452/composite MDWT 15.2
Olema Pharmaceuticals Inc. /zigman2/quotes/222642382/composite OLMA 14.2
Silverback TherapeuticsInc. /zigman2/quotes/222990636/composite SBTX 11.1
Kinnate Biopharma Inc. /zigman2/quotes/222974115/composite KNTE 11
Sigilon Therapeutics /zigman2/quotes/222990720/composite SGTX 9.9
4D Molecular Therapeutics Inc /zigman2/quotes/223129200/composite FDMT 9.3
Ortho Clinical Diagnostics Holdings /zigman2/quotes/224103492/composite OCDX 9
Terns Pharmaceuticals Inc. /zigman2/quotes/224427812/composite TERN 8.5
Cullinan Oncology /zigman2/quotes/223716065/composite CGEM 7.5
Bolt Biotherapeutics Inc. /zigman2/quotes/224427785/composite BOLT 7.2
Vor Biopharma /zigman2/quotes/224427790/composite VOR 6.8
Neximmune /zigman2/quotes/224555595/composite NEXI 6.5
908 Devices Inc. /zigman2/quotes/223233925/composite MASS 5.8
BioAtlaInc. /zigman2/quotes/223233580/composite BCAB 5.5
Talis Biomedical /zigman2/quotes/224555603/composite TLIS 5.0
Decibel Therapeutics Inc. /zigman2/quotes/224580750/composite DBTX 5.0
Source: Jefferies

Jefferies explains that they calculated “days to buy” like so: “We took the weight of each name across the Russell indexes, multiplied that by our best guess as to how many passive assets are pegged to each index to come up with dollars to buy. We then divide the dollars by its price to come up with shares to buy. We then took the average last 10-days of trading volume to determine the days to buy.”

Read next: These ‘sweet sixteen’ recovery stocks still have upside, according to Raymond James

/zigman2/quotes/210598147/delayed
US : US Composite
2,262.67
+5.60 +0.25%
Volume: 0.00
April 16, 2021 7:01p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,185.47
+15.05 +0.36%
Volume: 2.21B
April 16, 2021 5:15p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
14,052.34
+13.58 +0.10%
Volume: 4.03M
April 16, 2021 5:16p
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/zigman2/quotes/202264452/composite
US : U.S.: Nasdaq
$ 48.20
-1.38 -2.78%
Volume: 2,347
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$185.31 million
Rev. per Employee
$182,216
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/zigman2/quotes/222642382/composite
US : U.S.: Nasdaq
$ 36.14
+0.77 +2.18%
Volume: 98,123
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.42 billion
Rev. per Employee
N/A
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/zigman2/quotes/222990636/composite
US : U.S.: Nasdaq
$ 37.64
-1.30 -3.34%
Volume: 131,993
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.36 billion
Rev. per Employee
N/A
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/zigman2/quotes/222974115/composite
US : U.S.: Nasdaq
$ 29.64
-1.55 -4.97%
Volume: 138,867
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.36 billion
Rev. per Employee
N/A
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/zigman2/quotes/222990720/composite
US : U.S.: Nasdaq
$ 17.04
-1.39 -7.54%
Volume: 39,183
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$580.41 million
Rev. per Employee
N/A
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/zigman2/quotes/223129200/composite
US : U.S.: Nasdaq
$ 33.20
-3.08 -8.49%
Volume: 66,580
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$968.47 million
Rev. per Employee
N/A
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/zigman2/quotes/224103492/composite
US : U.S.: Nasdaq
$ 18.53
+0.31 +1.70%
Volume: 1.09M
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.28 billion
Rev. per Employee
$392,489
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/zigman2/quotes/224427812/composite
US : U.S.: Nasdaq
$ 17.91
+0.20 +1.13%
Volume: 241,095
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$444.97 million
Rev. per Employee
N/A
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/zigman2/quotes/223716065/composite
US : U.S.: Nasdaq
$ 35.20
-0.71 -1.98%
Volume: 167,104
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.56 billion
Rev. per Employee
N/A
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/zigman2/quotes/224427785/composite
US : U.S.: Nasdaq
$ 22.36
-1.97 -8.10%
Volume: 206,381
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$883.86 million
Rev. per Employee
$3,554
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/zigman2/quotes/224427790/composite
US : U.S.: Nasdaq
$ 30.10
-1.40 -4.44%
Volume: 151,379
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.17 billion
Rev. per Employee
N/A
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/zigman2/quotes/224555595/composite
US : U.S.: Nasdaq
$ 18.74
-2.26 -10.76%
Volume: 64,044
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$477.91 million
Rev. per Employee
N/A
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/zigman2/quotes/223233925/composite
US : U.S.: Nasdaq
$ 52.18
-0.51 -0.97%
Volume: 145,460
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.44 billion
Rev. per Employee
$672,350
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/zigman2/quotes/223233580/composite
US : U.S.: Nasdaq
$ 47.74
+0.18 +0.38%
Volume: 98,634
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.60 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/224555603/composite
US : U.S.: Nasdaq
$ 13.95
-0.61 -4.19%
Volume: 72,550
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$373.28 million
Rev. per Employee
$80,426
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/zigman2/quotes/224580750/composite
US : U.S.: Nasdaq
$ 9.89
-0.86 -8.00%
Volume: 68,604
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$261.24 million
Rev. per Employee
N/A
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