Agrify (NASDAQ:AGFY) stock is rocketing higher on Monday alongside heavy pre-market trading of the cannabis hardware and software cultivation company’s shares.
As of this writing, more than 17 million shares of AGFY stock have changed hands, well above the company’s daily average trading volume of about 1.1 million shares. Investors will also note that Agrify’s float is sitting at 7.17 million units.
It’s unclear what’s causing this increased interest in AGFY stock. There are no new press releases or filings with the Securities and Exchange Commission (SEC) that would do so. There’s also no analyst coverage that would cause today’s rally.
One thing that investors will want to keep in mind is that AGFY is a penny stock. This comes from its low price closing price of 25 cents and its market capitalization of only about $3.586 million.
What That Means for AGFY Stock
Agrify, being a penny stock, brings with it certain vulnerabilities. That includes the potential of a pump and dump from retail and day traders. It could also be up alongside speculative traders buying its shares.
No matter the case, investors will be wary as penny stocks can be incredibly volatile. While AGFY stock is up now, it might not remain that way for long.
AGFY stock is up 70% as of Monday morning. The stock was down 80.3% year-to-date when markets closed on Friday.
Investors will want to keep reading for more of the most recent stock market stories today!
We have all of the hottest stock market news worth reading about on Monday! That includes the biggest pre-market stock movers this morning and other news. You can catch up on all of this news at the links below!
More Monday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
- Archer Aviation (ACHR) Stock Pops on San Francisco Plans
- Why This Fund Manager Is Cutting His Stake in Nvidia (NVDA) Stock
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.
