ShiftPixy (NASDAQ:PIXY) stock is rocketing higher on Thursday as the gig economy support company’s shares experience recent volatility.
That resulted in shares of PIXY stock seeing a 43% loss during normal trading hours on Wednesday. Alongside that were some 1.1 million shares of the stock trading hands. To put that in perspective, the company’s daily average trading volume is closer to 75,000 shares.
Now, however, the company’s stock is recovering from that fall and then some with a massive 121.9% rally as of this writing. This also comes with heavy trading of more than 6.9 million shares during pre-market trading on Thursday.
What the PIXY Stock Movement Means for Traders
Investors looking to avoid a risky trade will want to steer clear of PIXY stock today. Combined with yesterday’s fall, it seems likely that speculative traders are behind the current movement. That means there could be another drop in the stock price after today’s rally comes to an end.
PIXY stock is fairly easy for traders to manipulate for a variety of reasons. First off, its prior closing price was $1.32 per share, which is a low entry point for retail traders. Second, shares have a low average trading volume of 75,000 shares, which has heavy trading making it volatile. Finally, its market capitalization is incredibly low at only about $13 million as of this writing.
All of these factors firmly place PIXY in penny stock territory. Penny stocks can be incredibly volatile and should be avoided by risk-averse investors. The stocks can be extra explosive outside of normal trading hours, too.
Investors looking for even more of the most recent stock market news will want to stick around!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Thursday! That includes the biggest pre-market stock movers this morning, what’s going on with Palantir (NYSE:PLTR) and more. You can catch up on all of this news at the following links!
More Thursday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Insider Lauren Stat Just Sold 11,000 Shares of Palantir (PLTR) Stock
- Why Are Stocks Down Today?
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 risks.
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.
