GT Biopharma (NASDAQ:GTBP) stock is soaring higher on Monday alongside heavy pre-market trading of the clinical-stage biopharmaceutical company’s shares.
This has more than 10.6 million shares of GTBP stock changing hands as of this writing. That’s well above its daily average trading volume of only about 10,000 shares. It’s also worth mentioning that the company’s float is sitting at 1.19 million shares.
All of this activity for GTBP stock comes without any news from GT Biopharma. That includes a lack of any press releases, filings or analyst coverage that would cause the shares to rally like this.
What is worth noting is GTBP’s penny stock status. This comes from its low daily average trading volume and its market capitalization of only $4.3 million.
Why That Matters to GTBP Stock
The fact that GTBP is a penny stock opens it up to certain issues. That includes the possibility of manipulation by certain types of traders. Among them are those that would pump up the penny stock before dumping it for profits.
This means investors will want to be careful about taking a stake in GTBP stock right now. While the shares are up, it might not be long before this rally ends and they come crashing back down.
GTBP stock is up 143% as of Monday morning.
There are more stock market stories ready to go below!
We have all of the hottest stock market news available on Monday! Among that is what has shares of MultiMetaVerse (NASDAQ:MMV) stock up, the biggest pre-market stock movers this morning and more. All of this news is available at the links below!
More Stock Market News for Monday
- Why Is MultiMetaVerse (MMV) Stock Up 105% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
- Gold Who? Silver Prices Break $30 Mark for First Time in a Decade.
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 hold (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.
