NEW YORK (TheStreet) -- Shares of American Axle & Manufacturing Holdings (AXL) - Get Report are spiking by 9.15% to $16.70 on heavy trading volume on Wednesday afternoon, after S&P Dow Jones Indices said it will add the company to the S&P SmallCap 600 Index, Bloomberg reports.
The stock soared to its highest in more than four months today.
The Detroit-based company is a manufacturer of automobile driveline and drivetrain components and systems.
At the close of trading on Friday, American Axle will replace Education Realty Trust (EDR) in the S&P index, which tracks the prices of 600 smaller U.S. companies.
Education Realty will be moved to an S&P mid-cap index.
Joining an index can create added demand for a stock among index funds that are required to adjust for new entries, Bloomberg said.
About 2.49 million of American Axle's shares were traded so far today compared to its average volume of 1.04 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and revenue growth.
However, the team also finds weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AXL