The award for the most impressive mover today has to go to Ascent Solar (NASDAQ:ASTI). This small-cap provider of photovoltaic products used in solar chargers and other technologies is rocketing higher today. At one point, ASTI stock surged more than 100%, before giving up some of its gains early this afternoon.
This incredibly violent surge higher triggered a number of halts throughout the day. Thus, it appears there’s something brewing with this solar-related name.
What that is exactly is hard to say. There’s little news on this name today. However, given the incredible size of volume underpinning today’s move, it’s clear this relatively low-float stock has some whales targeting it.
One item of note with respect to Ascent is a recent U.S. Securities and Exchange Commission (SEC) filing a few days ago tied to the reselling of its shares and an exercise of warrants. This is expected to bring the company $75 million in growth capital, something investors seem to like.
With ASTI stock trading at a market capitalization of around $200 million after today’s rise, perhaps this is what whales are jumping on right now. Let’s dive into whether ASTI stock may be worth a look right now.
Is ASTI Stock a Buy Right Now?
Certainly, Ascent’s underlying technologies could provide compelling upside for long-term investors. This company’s core product line is key to various growth areas of the market, including aerospace, defense and consumer/OEM applications. Thus, as far as a speculative growth investment goes, investors have good reason to look at ASTI stock.
That said, today’s rally is something that’s considerably out of the ordinary. On little news, any sort of rally to this degree ought to be taken with a grain of salt. It’s likely that a big buyer stepped in here and took over the float of this stock in short order. Momentum investors and algos may have picked up on this trend and carried it higher. That said, the extent to which this rally can continue remains to be seen.
Thus, until we get some sort of clarity on what drove this move, ASTI stock is one I think investors want to be very careful with. What goes up in an elevator can come down just as quick, especially in this market.
On the date of publication, Chris MacDonald 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.