Avalo Therapeutics (NASDAQ:AVTX) stock is rising higher on Friday despite a lack of news from the biotechnology company.
There haven’t been any new press releases or filings from Avalo Therapeutics that explain why the stock is rising today. On that same note, no analysts have offered new coverage of the stock that would contribute to its rally today.
However, that doesn’t mean AVTX stock is moving without reason. Even with the lack of news, the company’s shares are still experiencing heavy trading today. As of this writing, more than 16 million shares of the stock have changed hands. For the record, its daily average trading volume is about 2.6 million shares.
One thing traders will want to note is that AVTX is a penny stock. That comes from its low closing price of just 15 cents on Thursday, as well as its market capitalization of $2.052 million.
Why That Matters to AVTX Stock
Penny stocks can be incredibly volatile. That’s due to how easy they are to manipulate with their low market cap and trading price. This lets retail and day traders easily send shares soaring, only to offload them later. That could leave some investors seeing red if they aren’t careful about investing in penny stocks.
Considering the stock movement surrounding AVTX shares, this is likely what’s happening with it today. That means traders will want to be cautious with any investments they make in the company right now.
AVTX stock is up 19.4% as of Friday morning but is down 97.1% since the start of the year as of yesterday’s close.
Investors can keep up with all of the hottest stock market news below!
We’ve got all of the greatest stock market stories that traders need to know about for Friday! Among that is what has shares of Neptune Wellness Solutions (NASDAQ:NEPT) stock rising, the biggest pre-market stock movers this morning, and more. All of that news is ready to go at the following links!
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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.
