Biofrontera (NASDAQ:BFRI) stock is on the move Friday alongside heavy trading of the biopharmaceutical company’s shares.
This has more than 4.3 million shares of BFRI stock changing hands as of this writing. That’s already a massive increase over the company’s daily average trading volume of only about 48,000 shares.
This volatility of BFRI stock comes without any recent news from Biofrontera. The company hasn’t put out any new press releases or filings that explain today’s movement. Analysts also aren’t offering any coverage that would cause this reaction in the shares.
One thing worth keeping in mind about BFRI is that it’s a penny stock. That comes from its low daily trading volume average, the prior closing price of $1.34 and its market capitalization of $2.25 million.
Why That Matters to BFRI Stock
Today’s movement of BFRI may be directly related to it being a penny stock. The company’s shares might be the target of a pump and dump from retail and day traders this morning.
If this is what’s happening with Biofrontera stock, traders will want to be careful about investing in it. This could leave unlucky investors left holding the bag.
BFRI stock was up as much as 40% in pre-market trading on Friday morning but is currently down 14.8% with extreme volatility.
Investors looking for more of the most recent stock market stories will want to stick around!
We have all of the hottest stock market news worth reading about on Friday! That includes the biggest pre-market stock movers this morning, the latest news concerning Chevron (NYSE:CVX) earnings and more. All of that info is available at the following links!
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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.
