Castellum (NYSEMKT:CTM) stock is surging higher on Friday despite a lack of news from the information technology company.
Castellum hasn’t put out any press releases or made any filings that would explain why the stock is rocketing higher this morning. In addition to that, there have been no new analyst covers that could be behind today’s rally.
Instead, it looks like heavy trading of CTM stock is what has the shares taking off today. As of this writing, more than 4.7 million shares of the stock have changed hands. That’s well above the company’s daily average trading volume of about 71,000 shares.
One thing investors will keep in mind is the low trading volume. Combining it with the stock’s prior closing price of 45 cents per share, and the company’s market capitalization of $23.242, helps explain today’s movement.
Why Does That Matter for CTM Stock?
All of these factors firmly establish CTM as a penny stock. Penny stocks can be incredibly volatile normally and are even more so outside normal trading hours. That’s due to how easily retail traders can pump and dump the shares for a profit.
Adding to this, CTM shares are in danger of being delisted due to their low trading price. This can sometimes act as a catalyst for speculative traders that want to push the stock higher. That may help explain why the shares are seeing so much activity today.
CTM stock is up 63.7% as of Friday morning.
Investors can read more about all of the latest stock market news below!
We have all of the hottest stock market coverage that traders need to know about on Friday! Among that is why OncoSec Medical (NASDAQ:ONCS) stock is rallying, the biggest pre-market stock movers this morning, and more. You can catch up on all of this news at the following links!
More Stock Market News For Friday
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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.
