Super Group Stock Enters Russell 2000 Index

Super Group shares to be included in Russell 2000 Index

Super Group (NYSE: SGHC ) shares have been added to the Russell 2000 Index as part of a broader annual rebalancing of the FTSE Russell equity benchmark.

The Russell 2000 is one of the world's most widely followed small-cap indices. Small-cap stocks are generally defined as stocks with market capitalizations between $250 million and $2 billion. Super Group lived up to expectations at Tuesday's close with a market capitalization of $1.41 billion.

"We are delighted to join the Russell 2000 Index," Neal Menash, CEO of Super Group, said in a statement. "We believe this milestone will elevate our investment profile as a public company." image among players as we work to optimize our global presence in the online sports betting and gaming industry while maintaining our profitability."

Through its inclusion in the Russell 2000 index, Super Group's shares are included in the broader Russell 3000 index. The sportsbook has not disclosed whether it will also be included in the Russell 2000's growth or value measures.

Stocks Awaiting Russell 2000 Earnings

In many cases, stocks rise on news of the addition of widely followed indexes because active managers and passive funds that follow those benchmarks need to buy the newly added stocks.

The supergroup has never experienced such a rally before. In fact, the share price of Betway’s parent company has fallen by 27.71% in the past week. That included a 20.68% drop on Monday, the day the gaming company announced it was joining the Russell 2000 index. The stock closed Tuesday at $2.87, just over half of its 52-week high of $5.67.

Super Group is more than a year away from its initial public offering after merging with a special purpose acquisition company (SPAC). As the share prices of numerous deSPAC companies, including several in the gaming industry, plummeted, Super Group was not immune to the trend. The stock is down more than 36% in the past 12 months.

Investors punished the stock as the company struggled to gain sufficient market share in the highly competitive U.S. sports betting space.

Wall Street mixed on Super Group stock

Currently, four analysts have rated the stock, with one rating the stock a "buy" and three giving it a "hold." Enthusiasm is even higher when it comes to price targets, with the consensus forecast at $5, 74.22% above Tuesday’s closing price. But that could be a sign that it's too late for analysts to cut that forecast as shares plummet.

Super Group is not highly rated. However, some analysts aren't particularly enthusiastic about the company's near-term growth prospects, suggesting that the high valuation score may not be justified. The company also controls iGaming company Spin.

"The group is licensed in multiple jurisdictions and holds leading positions in key markets in Europe, the Americas and Africa," the statement said.