Denny's Corporation was dropped from the Russell 2000 Value-Defensive Index, the Russell 2000 Growth-Defensive Index, and the Russell 2000 Defensive Index on June 30, 2025. This removal is a result of the annual rebalancing of the Russell indexes, which are widely used benchmarks for institutional investors.
Inclusion or exclusion from such prominent indexes can influence a company's investor base and trading dynamics. Being dropped from these defensive-oriented indexes may signal a shift in how the market categorizes Denny's, potentially affecting its appeal to certain investment funds that adhere to specific index mandates.
The change in index membership can lead to adjustments in portfolio allocations by passive and active funds tracking these indexes. This could result in reduced institutional ownership and potentially impact the liquidity of Denny's stock, as funds may be required to sell shares to align with their new index compositions.
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