Inno (NASDAQ:INHD) stock is on the rise Monday alongside heavy pre-market trading of the steel and mobile home manufacturing company’s shares.
That heavy trading has more than 8.7 million shares of INHD stock changing hands as of this writing. That’s well above the company’s daily average trading volume of only about 67,000 shares.
Investors will note this movement comes without any news from the company. That includes a lack of press releases or filings with the Securities and Exchange Commission (SEC). There’s also no new analyst coverage that would cause Inno shares to rally as they have.
What is worth keeping in mind is the company’s penny stock status. That comes from its low daily average trading volume, the prior closing price of 63 cents per share and its market capitalization of only $13.084 million.
What That Means for INHD Stock
All of these are signs that Inno’s shares could be undergoing a pump and dump. It’s worth noting that the company’s float is sitting at 3.9 million units when considering this option.
With this possibility present, INHD stock isn’t an investment for the risk-averse trader this morning. That wild rally may not last long, and it could leave traders seeing red if they aren’t careful.
INHD stock is up 46.4% as of Monday morning but was down 54.4% year-to-date when markets closed on Friday.
Below are more stock market stories worth reading!
We have all of the hottest stock market news traders need to know about on Monday! That includes the biggest pre-market stock movers this morning, the latest news concerning shares of Biodexa (NASDAQ:BDRX) and more. All of that info is available at the following links!
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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.
