American Axle Rises to Four-Month High Ahead of Joining Indexby
Shares will be added to S&P SmallCap 600 after Friday close
Vehicle parts supplier will replace Education Realty Trust
American Axle & Manufacturing Holdings Inc. climbed to its highest in more than four months after S&P Dow Jones Indices said it will add the supplier of vehicle drivetrains to the S&P SmallCap 600 Index.
The shares gained 7.8 percent to $16.49 as of 11:56 a.m. New York time after reaching $16.79, their highest intraday price since Jan. 6. American Axle declined 19 percent this year through Tuesday.
American Axle as of the close of trading Friday will replace Education Realty Trust Inc. in the S&P index that tracks the prices of 600 smaller U.S. companies, according to a statement. Joining an index can create additional demand for a stock among index funds that are required to adjust for new entries. Education Realty is being moved to an S&P mid-cap index.
Stocks in the S&P SmallCap 600 Index must have an unadjusted market capitalization of $400 million to $1.8 billion. At least half of the shares outstanding must be available for trading and the companies have to have reported profits for the most recent quarter as well as in total for the four most recent quarters.