Castor Maritime (NASDAQ:CTRM) may not be a household name, but CTRM stock is up big today on heavy trading volume. With that in mind, what should you know now?
To start, investors should make sure they are familiar with Castor Maritime. The company is a player in the dry bulk cargo market, specifically providing ocean transportation for bulk cargoes. Essentially, it uses its vessels to transport everything from iron ore to grains to cement and sugar around the world. In other words, it may not be the sexiest business, but it is an important one.
With that in mind, investors should also know that CTRM stock is up more than 20% today. This comes as more than 350 million shares have traded hands, compared to an average volume of just 130 million shares each day.
So what should you know? It looks like there are two potential big reasons behind the surge in Castor Maritime shares today. The first stems from a company update last week. At the time, it shared that through its subsidiary, it agreed to purchase a Kamsarmax dry bulk carrier. This vessel was built in Japan and comes with a purchase price tag of $14.5 million.
Additionally, this purchase is not the only one for Castor Maritime. The company said that this acquisition is just part of its larger growth strategy. In the same press release, it said that this acquisition comes after a recent announcement of another Kamsarmax purchase. When these deals wrap up, the company will have six Panamax vessels, two Kamsarmax vessels and one Capesize vessel. All together, this growing fleet will help Castor Maritime play a larger role in the dry bulk cargo market.
Why CTRM Stock Is Gaining Today
Considering the latest news, it is reasonable to believe that investors are celebrating another accomplishment on the growth front. Castor Maritime promised to keep expanding its fleet, and it did. That is a good sign for CTRM stock, but there also may be another big catalyst at play.
It turns out that CTRM is quite popular with investors on social media, including in the subreddit r/RobinhoodPennyStocks. This should not be entirely surprising. When Robinhood first levied restrictions on in-demand equities, Castor Maritime made the list. Although those restrictions have since been lifted, there was a period where investors could only acquire five new shares of CTRM stock. This speaks to retail investor interest and its broad popularity.
So what should you do here? With a share price below $1 and not a lot of recent company news, Castor Maritime is certainly a speculative play. Do your own research and keep this popular penny stock on your watch list.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.