Why Is Volcon (VLCN) Stock Up 60% Today?


  • Volcon (VLCN) stock is up Tuesday alongside heavy trading.
  • That’s despite a lack of news from the company.
  • The surge may be due to its penny stock status.
VLCN Stock - Why Is Volcon (VLCN) Stock Up 60% Today?

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Volcon (NASDAQ:VLCN) stock is rocketing higher on Tuesday alongside heavy pre-market trading of the electric off-road powersport vehicle company’s shares this morning.

This has more than 2 million shares of the stock traded as of this writing. That’s well above the company’s daily average trading volume of about 95,000 shares. Investors will also note that VLCN stock’s float is only 250,940 shares.

It’s also worth keeping in mind that this heavy trading comes without any news from Volcon. There are no new press releases or filings with the U.S. Securities and Exchange Commission (SEC) to explain today’s rally. The same is true for analyst coverage.

Another thing worth mentioning is that VLCN stock is a penny stock. This comes from its low daily average trading volume, its prior closing price of $3.88 and its market capitalization of just $1.16 million.

What That Means for VLCN Stock

Being a penny stock comes with certain disadvantages. That includes volatility as speculative traders dive into the shares. VLCN could also be rallying in the first part of a pump and dump by retail and day traders.

No matter the case, VLCN seems to be a risky investment that traders may want to avoid this morning.

VLCN stock is up 59.5% as of Tuesday morning. However, the shares were down 99.1% year-to-date (YTD) when markets closed yesterday.

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 Tuesday! That includes the biggest pre-market stock movers this morning and more of the latest market happenings. You can catch up on all of that info at the links below!

More Tuesday Stock Market News

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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.

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