Nxu (NASDAQ:NXU) stock is on the move Thursday despite a lack of news from the battery cell manufacturing company.
Nxu hasn’t put out any press releases that explain today’s rally. The company’s also hasn’t made any new filings with the Securities and Exchange Commission (SEC). Likewise, there’s no new analyst coverage that acts as a catalyst for today’s movement.
However, investors will note that NXU stock is seeing incredibly heavy trading this morning. As of this writing, more than 45 million shares of Nxu’s stock have changed hands. That’s a massive surge compared to the company’s daily average trading volume of about 2.7 million shares.
Today’s movement likely comes from the fact that NXU is a penny stock. This is due to its low trading price of 7 cents when markets closed yesterday, as well as its market capitalization of only $6.39 million.
Why That Matters to NXU Stock
Penny stocks are already incredibly volatile, and that’s doubly true outside of normal trading hours. It’s at times like this that retail and day traders work together to pump up shares of penny stocks.
Of course, those inflated trading prices can’t last forever. That means that NXU stock is likely going to give up its recent games throughout the day. That means traders should avoid investing in the company right now or risk getting stuck holding the bag.
NXU stock is up 37.5% as of Thursday morning but was down 97.7% year-to-date when markets closed yesterday.
Investors keeping an eye out for all of the latest stock market news are in luck!
We’re offering up insight into all of the hottest stock market news that traders need to know about on Thursday! Among that is what has shares of Zapp Electric Vehicles (NASDAQ:ZAPP) stock up, the biggest pre-market stock movers this morning and more. All of that news is available at the links below!
More Stock Market News for Thursday
- Why Is Zapp Electric Vehicles (ZAPP) Stock Up 69% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Warning! What a ‘Magnificent Seven’ Stocks Meltdown Would Mean for the Market.
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.
