Reshape Lifesciences (NASDAQ:RSLS) stock is rocketing higher on Wednesday alongside heavy pre-market trading of the obesity and metabolic diseases management company’s shares.
As of this writing, more than 21.3 million shares of RSLS stock have changed hands, well above the company’s daily average trading volume of about 1.5 million shares.
This comes without any news from Reshape Lifesciences. There’s also no analyst coverage that would cause the rally. However, investors will note that the float of RSLS stock is fairly low at 20.79 million units.
It’s also worth keeping in mind that RSLS is a penny stock. This comes from its low closing price of 21 cents and market capitalization of just $4.874 million.
What That Means for RSLS Stock
Being a penny stock comes with certain problems. One is the ability for traders to pump and dump shares, which is possible due to the low entry point.
This may be what’s happening to RSLS stock today. If so, investors will want to be wary as the stock could come crashing back down soon once the pump is over.
RSLS stock is up 79.5% as of Wednesday morning. The stock was down 23% year-to-date when markets closed yesterday.
There are more stock market stories traders will want to read about below!
We have all of the hottest stock market stories investors need to know about on Wednesday! That includes a look at the biggest pre-market stock movers and even more of the latest market happenings! You can catch up on that at the following links!
More Wednesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- 5 Investors Betting Big on Plug Power (PLUG) Stock in Q1
- Dear SPCE Stock Fans, Mark Your Calendars for June 8
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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.
