QualTek Services (NASDAQ:QTEK) stock is rocketing higher on Tuesday despite a lack of news from the infrastructure services company.
The company hasn’t released any recent earnings reports or made any filings with the U.S. Securities and Exchange Commission (SEC) to explain today’s gains. Additionally, there is no new analyst coverage for QTEK stock this morning.
The one thing that does explain the rise of QualTek today is heavy trading, however. As of this writing, more than 5.4 million shares have been traded. That’s a massive increase compared to the company’s daily average trading volume of only about 653,000 shares.
What’s Happening With QTEK Stock?
QTEK is a penny stock with shares closing trading on Friday at about 8 cents apiece. That helps explain why shares are rising higher this morning. Penny stocks are incredibly volatile and can experience wild surges in price without warning.
Sometimes this is due to speculative traders amassing stakes in the stock. Other times, retail traders pick out penny stocks to pump and dump. This has become easier to do, with these types of traders planning their actions beforehand via social media and messaging services.
However, these are also red flags that investors need to be mindful of when looking at QTEK stock. While the company’s shares are up 187.5% on Tuesday morning, they’ve already given up some of their gains. It wouldn’t be surprising to see the stock continue to lose ground throughout the rest of the day.
Luckily, we’ve got plenty of other stock market news traders will want to keep in mind this morning!
Our stock market coverage for Tuesday starts off with a look at the biggest pre-market stock movers this morning. We’ve also got news on Top Financial Group (NASDAQ:TOP) stock resuming trading this morning and an update on the housing market. You can catch up on all of this at the following links!
More Tuesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
- Housing Market Crash Alert: What a Debt Default Would Mean for Mortgage Rates
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Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
