Syntec Optics (NASDAQ:OPTX) stock is rocketing higher on Wednesday alongside heavy pre-market trading of the optics and photonics components company’s shares.
This has more than 4.6 million shares of OPTX stock changing hands as of this writing. That’s a major increase compared to its daily average trading volume of about 6,500 shares. It’s also worth noting that the company’s float is 6.06 million units.
This heavy trading of OPTX stock comes without any clear news from the company. That includes a lack of press releases or filings with the Securities and Exchange Commission (SEC) today. There’s also no analyst coverage that would act as a catalyst for today’s rally.
What we do want to keep in mind is that OPTX is a penny stock. This comes from its low daily average trading volume, a prior closing price of $2.35 per share and its market capitalization of $86.218 million.
What That Means for OPTX Stock
Being a penny stock comes with certain issues. That includes volatility, as the shares are easy to manipulate. It could also be a case of speculative traders taking a stake in the business.
No matter the case, the increase without news should be a warning to investors. It’s unlikely that shares of OPTX stock will remain that high for long. This could leave some unfortunate traders left holding the bag.
OPTX stock is up 185.6% as of Wednesday morning.
Investors will want to keep reading for more of the latest stock market news today!
We have all of the hottest stock market stories ready to go on Wednesday! That includes the biggest pre-market stock movers this morning and more of the most recent news. All of that is ready to go at the links below!
More Wednesday 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.
