Heart Test Laboratories (NASDAQ:HSCS) stock is rising higher on Wednesday without any clear news from the maker of cardiovascular diagnostic devices.
There have been no new press releases or filings with the Securities and Exchange Commission that explain why HSCS stock is rising higher today. On that same note, no analysts are offering new coverage of the stock that would cause today’s rally.
Even so, shares of HSCS stock are soaring alongside massive trading today. As of this writing, over 21 million shares of the company’s stock have been traded. That’s a massive leap over its daily average trading volume of about 1.9 million shares.
Investors will keep in mind that Heart Test Laboratories is a penny stock. That comes from its low closing price of 18 cents and market capitalization of only $1.974 million.
What That Means for HSCS Stock
Being a penny stock opens Heart Test Laboratories’ shares up to certain vulnerabilities. That includes manipulation from certain traders that might seek to pump and dump the shares.
With that in mind, it makes sense that HSCS stock is seeing such volatility today. It also means that investors will want to be careful about taking a stake in the company right now unless they want to risk holding the bag once the rally is done.
HSCS stock is up 43.3% as of Wednesday morning but is still down 78.3% year-to-date as of yesterday’s close.
Investors looking for more of the most recent stock market news will want to keep reading!
We’re offering coverage of all the hottest stock market stories worth reading about on Wednesday! That includes the biggest pre-market stock movers this morning, the latest news from Digital World Acquisition (NASDAQ:DWAC) and more. All of that is ready to go at the links below!
More Wednesday Stock Market News
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.
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
