Heart Test Laboratories (NASDAQ:HSCS) stock is taking off on Wednesday despite a lack of news concerning the medical technology company.
Investors will note that Heart Test Laboratories hasn’t put out any new press releases or filings with the Securities and Exchange Commission (SEC) that explain today’s rally. On that same note, there’s no new analyst coverage that would act as a catalyst for today’s gains.
Even so, shares of HSCS stock are experiencing incredibly heavy trading today. As of this writing, more than 12.5 million shares of the company’s stock have changed hands. To put that number in perspective, the Heart Test Laboratories’ daily average trading volume is closer to 164,000 shares.
One thing that investors will want to keep in mind is that HSCS is a penny stock. That comes from its low trading price of about 15 cents and its market capitalization of just $1.638 million.
Why That Matters to HSCS Stock
Being a penny stock opens HSCS up to certain vulnerabilities. That includes manipulation by certain investors seeking to pump and dump its shares. Considering the massive rally today with heavy trading and no news, it’s completely possible that’s what’s happening to HSCS this morning.
That also means that investors will want to be careful about investing in HSCS stock today. This rally could end at any time, and that might leave some unfortunate traders holding the bag.
HSCS stock is up 297.5% as of Wednesday morning but was down 82% year-to-date when markets closed on Tuesday.
Investors looking for even more of the most recent stock market stories are going to want to keep reading!
We have all of the hottest stock market news that traders need to know about on Wednesday! That includes a dive into the biggest pre-market stock movers this morning, what’s going on with Robinhood Markets (NASDAQ:HOOD) stock and more. All of that news is ready to do down below!
More Wednesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- Robinhood (HOOD) Stock Drops 6% Following Q3 2023 Earnings Report
- Rivian Shares Jump 2.2% on Higher Revenue, 2023 Production Outlook
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.
