Axcella Health (NASDAQ:AXLA) stock is rocketing higher on Tuesday despite a lack of news from the clinical-stage biotechnology company.
There are no new press releases or filings with the U.S. Securities and Exchange Commission (SEC) that would act as a catalyst for today’s rally. Likewise, there’s no new analyst coverage that would explain why AXLA stock is up today.
The one thing investors can look toward as a reason for this rally is the heavy trading of AXLA stock. As of this writing, more than 11.2 million shares have changed hands. That’s a massive jump compared to its daily average trading volume of about 265,000 shares.
Investors will also note that this is the second day in a row that AXLA shares have rallied alongside heavy trading. The company’s stock climbed over 11% higher on Monday as some 2.6 million shares were traded.
What’s Behind the AXLA Stock Movement
It’s likely that AXLA’s strong stock movement this morning is the result of it being a penny stock. That comes from its low trading price of 18 cents and its market capitalization of only $12.896 million.
That’s something traders will want to keep in mind if they consider taking a stake in AXLA stock. Being a penny stock opens Axcella Health’s shares up to volatility. It’s possible that’s what’s happening today as retail and day traders pump shares up. If so, it may not be long before the stock falls.
AXLA stock is up 68% as of Tuesday morning.
Investors seeking out more of the latest 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 Tuesday! That includes the biggest pre-market stock movers this morning, the latest news concerning short squeeze stocks and more. All of that is ready to go at the links below!
More Tuesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
- Short Squeeze Stocks: APRN, AURC Top List of 5 Most Likely Short Squeezes
- Can Mullen (MULN) Split Its Shares AGAIN to Regain Nasdaq Compliance?
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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.
