Eco Wave Power Global (NASDAQ:WAVE) stock is on the rise Thursday despite a lack of news concerning the wave energy company.
There are no new press releases from Eco Wave Power Global that explain why its shares are climbing higher today. Additionally, the company has made any filings with the Securities and Exchange Commission (SEC) that would act as a catalyst today. Finally, no analysts have weighed in on the stock recently.
Instead, it looks like heavy trading on Thursday explains why Eco Wave Power Global stock is up today. As of this writing, more than 2.2 million shares of the company’s stock have changed hands. To put that in perspective, its daily average trading volume is well below that at about 32,000 shares.
One thing investors will want to keep in mind is the stock’s prior closing price of $1.60 per share. Combined with the company’s market capitalization of $8.879 million and low average trading volume, this pegs WAVE as a penny stock.
Why That Matters for WAVE Stock
Penny stocks can be incredibly volatile for a couple of reasons. Chief among these is the ability for certain types of traders to manipulate the shares. They can do so due to the low entry point, thus allowing them to buy large stakes in the company. That can result in a rally, with the investors selling the shares afterward for a profit. However, that has the stock’s price falling when they do.
This may be what’s happening with WAVE stock today. Especially considering the lack of news this morning. As such, investors will want to be careful about making an investment in the company right now.
WAVE stock is up 57.7% as of Thursday morning.
Investors seeking more of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the latest stock market coverage traders need to know about on Thursday! Among that is what has shares of Sigilon Therapeutics (NASDAQ:SGTX) stock rising, the biggest pre-market stock movers this morning, and more. You can find all of this at the following links!
More Thursday Stock Market News
- Why Is Sigilon Therapeutics (SGTX) Stock Up 691% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
- XPEV Stock Soars Higher Ahead of Xpeng G6 Launch
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.
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.
