Zhongchao (NASDAQ:ZCMD) stock is soaring higher on Thursday alongside heavy pre-market trading of the Chinese healthcare information, education and training services company’s shares.
This has more than 5.3 million shares of ZCMD stock changing hands as of this writing. That’s already well above the company’s daily average trading volume of about 206,000 shares.
It’s worth noting that this movement comes without any clear news from the company. That includes a lack of press releases or filings this morning. There’s also no new analyst coverage that would act as a catalyst for today’s rally.
One thing that is worth keeping in mind is ZCMD’s status as a penny stock. This comes from its prior closing price of $1.54 per share and its market capitalization of only $3.803 million.
What This Means for ZCMD Stock
Investors will keep in mind that penny stocks can often be volatile. This is doubly true outside of normal trading hours. That’s frequently when certain types of traders choose to manipulate a company’s shares.
If that’s what’s going on with Zhongchao stock today, investors will want to be wary. It means we could see it fall from today’s highs in no time. Traders will want to consider that before taking a stake in the company today.
ZCMD stock is up 40.3% as of Thursday morning.
There are more stock market stories worth reading below!
We have all of the hottest market news on Thursday! Among that is why shares of HWH International (NASDAQ:HWH) stock are rising, the biggest pre-market stock movers this morning and more. All of this info is available at the following links!
More Stock Market News for Thursday
- Why Is HWH International (HWH) Stock Up 55% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Why Is Tilray (TLRY) Stock Up 18% Today?
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.
