IronNet (NYSE:IRNT) stock is taking a beating on Tuesday as the company gives up some of the gains it made during a Friday rally.
Friday is the previous day of trading, due to markets being closed on Memorial Day. During normal trading hours that day, shares of IRNT closed 33% higher alongside news of Maier Joshua Tarlow holding a 9.99% stake in the company.
News of that investment resulted in shares of IRNT experiencing heavy trading on Friday. This had almost 8.8 million shares changing hands during normal trading hours. That’s well above its daily average trading volume of about 796,000 shares.
IRNT stock isn’t seeing nearly as much activity on Tuesday morning with some 170,000 shares traded as of this writing. That low stock movement helps explain the drop in price as IronNet’s shares settle after the recent rally.
What Else Investors Need to Know About IRNT Stock
Traders will also keep in mind that IRNT stock is a penny stock. This comes from its prior closing price of 26 cents per share and market capitalization of around $29 million. That means it’s more susceptible to volatility, especially outside of normal trading hours.
IronNet is a cybersecurity company founded in 2014. The company went public in August 2021 after completing a special purpose acquisition company (SPAC) merger with LGL Systems Acquisition. That saw it raise gross proceeds of about $136.7 million. Shares also traded closer to $10 each at that time.
IRNT stock is down 15.7% as of Tuesday morning.
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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.