Arbe Robotics (NASDAQ:ARBE) stock is rocketing higher on Tuesday despite a lack of news from the company this morning.
That includes no new press releases from Arbe Robotics. The 4D imaging radar company based out of Israel also hasn’t released any filings with the U.S. Securities and Exchange Commission (SEC) that explain the rally.
Instead, heavy trading explains why shares of ARBE stock are taking off today. As of this writing, more than 6 million shares have changed hands. That’s a massive jump from the daily average trading volume of about 57,000 shares.
What This Means for ARBE Stock
Investors will want to be careful about making an investment in ARBE stock right now. Today’s gains with heavy trading and no news are a red flag. That’s due to the possibility that shares could come crashing back down once the rally is over.
That’s likely to happen when traders consider ARBE to be a penny stock. The company’s shares have a low trading volume, making them easy to pump and dump despite Arbe’s market capitalization of $279.483 million being above the average penny stock.
ARBE stock is up 64.1% during pre-market trading on Tuesday.
Investors looking for more of the latest stock market news will want to keep reading!
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On the date of publication, William White did not hold (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.