Why Is Histogen (HSTO) Stock Soaring 35% Today?

  • Histogen (HSTO) is rising alongside heavy trading today.
  • That’s despite a lack of recent news from the company.
  • The latest was a reverse stock split that went into effect last month.
Stacks of pennies representing penny stocks representing HSTO Stock.

Source: John Brueske / Shutterstock.com

Histogen (NASDAQ:HSTO) stock is rocketing higher on Tuesday despite a lack of news concerning the clinical-stage therapeutics company.

Instead, it looks like we have heavy trading to thank for the rise in HSTO stock today. As of this writing, some 12 million shares of the stock have changed hands. That’s a major increase next to its daily average trading volume of only around 122,000 shares.

The latest news from Histogen is a reverse stock split that went into effect last month. This saw the company consolidating 20 shares of HSTO down to a single share of stock. The company enacted the reverse stock split to avoid delisting on the Nasdaq Exchange.

It looks like this has traders lumping HSTO stock in with Versus Systems (NASDAQ:VS) shares today. This is another stock that’s experiencing heavy trading despite no recent news. It also warned of a Nasdaq delisting last month due to its low stock price.

It’s possible that these two stocks have been tied together today by retail traders looking to pump and dump shares. That makes sense as both companies fit the definition of a penny stock. That opens them up to volatility as day traders can easily manipulate their share prices by working together.

HSTO stock is up 34.9% as of Tuesday morning but is down 43% since the start of the year.

There’s more recent stock market news worth diving into below!

We’ve got all the hottest stock news traders will want to read about for Tuesday! Among that is what has shares of The Gap (NYSE:GPS), Pershing Square Tontine Holdings (NYSE:PSTH), and Dollar General (NYSE:DG) stock on the move. You can get up to speed on that news at the following links!

More Tuesday Stock Market News

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Read More:Penny Stocks — How to Profit Without Getting Scammed

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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