Zhongchao (NASDAQ:ZCMD) stock is rocketing higher on Friday alongside heavy trading of the Chinese healthcare information and training company’s shares.
That has more than 11.9 million shares of ZCMD stock changing hands as of this writing. This is well above its daily average trading volume of about 390,000 shares. Investors will also note that the float for Zhongchao is only about 1.3 million units.
The increase in activity for ZCMD stock today 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 news that would send shares higher today.
It’s also worth noting that ZCMD is a penny stock. That comes from its prior closing price of $1.45 per share and its market capitalization of $3.581 million.
What That Means for ZCMD Stock
Being a penny stock opens ZCMD shares up to certain vulnerabilities. Among them is volatility and manipulation from certain types of traders. Its low float also plays into that compared to the heavy trading today.
All of this is to say that ZCMD stock may be undergoing a short squeeze right now. While that has the stock up at the moment, it also means the shares could come crashing back down soon. This makes it a risky investment for traders today.
ZCMD stock is up 102.8% as of Friday morning. However, the shares closed out Thursday down 54.6% year-to-date.
Investors will find more of the most recent stock market stories below!
We have all of the hottest stock market news ready to go on Friday! Among that is what has shares of Redwoods Acquisition (NASDAQ:RWOD) stock up, the biggest pre-market stock movers this morning and more. All of that news is available at the following links!
More Stock Market News for Friday
- Why Is Redwoods Acquisition (RWOD) Stock Up 72% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
- LI Stock Alert: Li Auto Launches New Li L6 SUV
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.
