NextPlay Technologies (NASDAQ:NXTP) stock is rising higher on Thursday even without any recent news from the technology solutions company.
NextPlay Technologies hasn’t put out any new press releases or made any filings with the U.S. Securities and Exchange Commission (SEC) that would contribute to today’s rally. On that same note, there’s no new analyst coverage of NXTP stock that could be causing today’s movement.
Despite that, shares of NXTP stock are climbing today alongside heavy trading. As of this writing, more than 2.7 million shares have changed hands. That’s already well above its daily average trading volume of about 26,000 shares.
Investors will note that NXTP is a penny stock. This comes from its low trading volume of 45 cents per share price at closing yesterday and its market capitalization of only about $3 million.
What That Means for NXTP Stock
Considering the massive trading volume without news today, it seems likely that NXTP stock has been targeted for a pump and dump. This often happens to penny stocks, as they have a lower barrier to entry that allows for manipulation.
That means investors will want to be careful about taking a stake in NXTP alongside today’s rally. It’s possible they’ll be left holding the bag if the stock falls in the days to come.
NXTP stock is up 52.7% as of Thursday morning but was down 80.5% year-to-date (YTD) as of yesterday’s close.
There’s more stock market news that traders are going to want to read about today below!
We’re offering up deep dives into all of the latest stock market stories for Thursday. Among that is what has shares of Appreciate (NASDAQ:SFR) stock up, the biggest pre-market stock movers this morning and more. All of that news is available at the following links!
More Stock Market News for Thursday
- Why Is Appreciate (SFR) Stock Up 77% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Morris Pearl Says Americans Shouldn’t Be Worried About the National Debt. Here’s Why.
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.
