Infinity Pharmaceuticals (NASDAQ:INFI) stock is rocketing higher on Tuesday morning despite a lack of news from the biopharmaceutical company.
Investors seeking out news concerning shares of INFI stock this morning won’t find any new press releases or filings. There’s also been no new coverage from analysts that would explain today’s rally.
However, traders will likely notice that INFI stock is seeing incredibly strong trading this morning. As of this writing, more than 33 million shares have changed hands. That’s an impressive surge in trading volume compared to its daily average of about 920,000 shares.
One thing investors will want to keep in mind about this is INFI stock’s prior closing price of 9 cents per share. That, combined with its market capitalization of just $8 million, firmly place the shares in penny stock territory.
Why Does This Matter for INFI Stock?
Penny stocks are incredibly volatile due to how easily retail and day traders can manipulate them. The low entry point allows for this when combined with a small market cap. As such, investors can buy up large numbers of shares to boost the price before dumping it for profit.
Traders will also keep in mind that penny stocks are even more volatile outside of normal trading hours. That likely explains why traders are seeing so much movement from INFI stock in pre-market trading this morning.
INFI stock is up 84% as of Tuesday morning.
Investors looking for more of the most recent stock market news will want to stick around!
InvestorPlace is home to all of the latest stock market coverage traders need for Tuesday! That includes our breakdown of the biggest pre-market stock movers this morning, the hottest Black Spade Acquisition (NYSEMKT:BSAQ) stock news, and more. You can find all of this info at the following links!
More Tuesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
- Dear BSAQ Stock Fans, Get Ready for a VinFast SPAC Update on Aug. 10
- TSLA Stock Alert: Tesla’s CFO Just Stepped Down
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.
