SuperCom (NASDAQ:SPCB) stock is rocketing higher on Tuesday despite a lack of news from the cyber security company.
There are no new press releases or filings with the Securities and Exchange Commission (SEC) that explain why the stock is up today. On that same note, no analysts are offering new coverage of the shares that would cause today’s rally.
However, that doesn’t mean SPCB is moving without reason. Investors will note that the company’s shares are experiencing heavy trading on Tuesday. That has some 15 million shares on the move as of this writing. For comparison, its daily average trading volume is about 408,000 shares.
One thing that traders will want to keep in mind is that SPCB is a penny stock. This comes from its low closing price of 36 cents yesterday, as well as its market capitalization of just $2.164 million.
Why That Matters to SPCB Stock
Being a penny stock opens SPCB shares up to volatility. That’s doubly true outside of normal trading hours. This is typically due to retail and day traders selecting penny stocks for pump and dumps. It’s possible that investors are seeing the first half of that plan right now, which means the stock is likely to undergo a crash soon.
SPCB stock is up 81.8% as of Tuesday morning but was down 80.2% year-to-date as of Monday’s close.
Investors looking for more of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage that traders need for Tuesday! That includes the biggest pre-market stock movers this morning, the latest news concerning Israeli stocks and more. All of that news is ready to go down below!
More Tuesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
- Israeli Stocks Fall as Investors Fear Middle East Conflict
- JOBY Stock Alert: Joby Aviation Will Be Ready to Take Flight in 2025
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.
