Reshape Lifesciences (NASDAQ:RSLS) stock is getting a boost on Wednesday without any clear news from the medical device company.
There are no new press releases or filings with the Securities and Exchange Commission (SEC) that explain why the stock is rallying today. On that same note, no analysts are offering new coverage of RSLS stock that would result in this activity.
Even so, shares of RSLS stock are seeing incredibly heavy trading on Wednesday. As of this writing, more than 18 million shares of the company’s stock have been traded. That’s a massive increase compared to its daily average trading volume of about 1.9 million shares.
One thing that investors will keep in mind is Reshape Lifesciences’ penny stock status. This comes from its low trading price of 21 cents and market capitalization of just $1.074 million.
Why That Matters to RSLS Stock
Being a penny stock means that Reshape Lifesciences’ shares are open to volatility. This is due to the low trading price and market capitalization, making it easy for certain types of traders to manipulate the stock’s value.
That also means that RSLS stock is a bit of a risky investment right now. The current price represents the stock pumped up by these investors. It’s unlikely to maintain that height without news, which means those buying shares now may be left holding the bag.
RSLS stock is up 59.2% as of Wednesday morning.
There’s even more stock market news that investors are going to want to read about below!
We’re offering up insight into all of the latest stock market news for Wednesday. Among that is what has shares of Abri SPAC I (NASDAQ:ASPA) stock up today, the biggest pre-market stock movers this morning and more. All of that info is ready to go at the following links.
More Stock Market News for Wednesday
- Why Is Abri SPAC I (ASPA) Stock Up 41% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- UAW Strike Alert: Auto Workers Expand Strikes at GM, Stellantis
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 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.
