Shares of Lakeland Financial Corporation (NASDAQ: LKFN) traded roughly 10% higher as of 12:40 p.m. EDT after it was announced that the bank will join the S&P SmallCap 600 .
The S&P SmallCap 600 Index covers U.S. small-cap stocks with market capitalizations ranging from $700 million to $3.2 billion at the time the company is added to the index. Lakeland, a $6.2 billion asset bank based in Indiana, currently has a market cap of $1.65 billion.
Stocks tend to appreciate when they are added to an index because funds that track that index must now buy the stock. Also, being added to an index results in greater visibility for the stock.
For further details see:
Why Shares of Lakeland Bancorp Are Trading Higher Today