China XD Plastics (NASDAQ:CXDC) stock is rising higher on Wednesday but not due to any news from the company.
The rise in CXDC stock seems to have less to do with the company itself and more to do with its low price. Penny stocks have been getting a lot more attention over the last year as retail investors pump and dump them for quick gains.
Heavy trading of CXDC stock today seems to imply that this is the case. As of this writing, more than 163 million shares of the stock have changed hands. That’s a massive increase over the company’s daily average trading volume of 3.2 million shares.
While all this extra activity may draw in the less risk-averse traders, it’s not for everyone. Investing in a meme stock can be dangerous as they suffer from major volatility. As such, investors will want to be careful about taking a position in CXDC stock.
Keeping that in mind, let’s dive into what traders need to know about China XD Plastics.
- The company is a manufacturer of polymer composite materials in China.
- It was founded in 1985 and made its debut on the Nasdaq Exchange in 2009.
- China XD Plastics’ main operations come out of Beijing and it operates five manufacturing facilities around the world.
- These facilities account for 779,000 square meters, 200 production lines, and 700,000 tons of production.
- The company has more than 600 customers with some of its biggest focuses being the automobile industry.
CXDC stock was up 76.1% as of Wednesday afternoon.
There’s more stock market news worth looking into below!
InvestorPlace is home to the latest stock coverage that traders need to know about. Among that is what has Lucid Motors (NASDAQ:LCID), Enphase Energy (NASDAQ:ENPH), and Novavax (NASDAQ:NVAX) shares on the move today. You can learn all about that from the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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