Richtech Robotics (NASDAQ:RR) stock is rocketing higher on Wednesday despite a lack of news concerning the robot maker.
There are no press releases or filings with the U.S. Securities and Exchange Commission (SEC) that explain why RR stock is rising today. The same also holds true for analyst coverage of the shares.
However, investors will note that RR stock is seeing heavy trading on Wednesday. This has more than 138 million shares changing hands as of this writing. That’s well above its daily average trading volume of roughly 4.1 million shares. Its float is only 13.71 million units.
One thing worth keeping in mind is Richtech Robotics’ status as a penny stock. That comes from its prior closing price of 37 cents and its market capitalization of $39 million.
What That Means for RR Stock
Being a penny stock comes with certain vulnerabilities. That includes extra susceptibility to volatility. This can result in wild swings in the price of the company’s shares.
As for what’s behind it, it could be a couple of things. This movement could be speculative traders buying up shares of RR stock while they are cheap. It may also be an attempt by retail and day traders to pump and dump the company’s shares.
No matter the case, investors will want to be careful about investing in RR stock right now. While the shares are up, there’s no telling how long they will remain that way without any news to support the rally.
RR stock is up 54.2% as of Wednesday morning.
Investors will want to keep an eye out for more of the most recent stock market news below!
We have all of the latest stock market happenings that traders need to know about on Wednesday! Among that is what has shares of Upstart (NASDAQ:UPST), Airbnb (NASDAQ:ABNB) and Super Micro Computer (NASDAQ:SMCI) stock on the move today. All of this info is ready to go at the links below!
More Stock Market News for Wednesday
- UPST Stock: Why Investors Are Jumping Into Upstart Today
- ABNB Stock Down 14% After Airbnb Q2 Results Disappoint
- SMCI Stock Split Alert: Is Super Micro a Buy on the 10-for-1 Split News?
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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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
