SMX (Security Matters) (NASDAQ:SMX) stock is rocketing higher on Thursday alongside heavy pre-market trading this morning.
This has more than 57 million shares of SMX stock changing hands as of this writing. That’s well above the company’s daily average trading volume of about 4.8 million shares. Investors will also note the stock’s float is 26.03 million units.
The heavy trading and rally of SMX stock comes without any clear news from the company this morning. That includes a lack of press releases or filings with the Securities and Exchange Commission (SEC). There’s also no analyst coverage that would send the shares soaring higher today.
One thing worth keeping in mind is that SMX is a penny stock. This comes from its prior closing price of 12 cents per share and its market capitalization of just $4.688 million.
Why That Matters to SMX Stock
Being a penny stock comes with certain disadvantages. That includes being subject to extreme volatility. This can happen due to speculative traders taking a stake in the company.
Another possibility is retail and day traders pumping the stock. If that’s the case, they’ll likely dump it for profits. That makes SMX a risky investment right now.
SMX stock is up 69.7% as of Thursday morning.
Investors looking for more of the most recent stock market stories are in luck!
We have all of the hottest stock market news traders need to know about on Thursday! That includes the biggest pre-market stock movers this morning and more of the latest market happenings. All of that info is ready to go at the links below!
More Thursday Stock Market News
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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.
