Kaival Brands Innovations (NASDAQ:KAVL) stock is rocketing higher on Thursday alongside heavy pre-market trading of the nicotine company’s shares.
Early morning trading on Thursday has more than 5.7 million shares of KAVL stock changing hands. That’s a massive surge in trading volume when compared to its daily average of about 35,000 shares.
Investors will note that this movement comes without any recent news from Kaival Brands Innovations. That includes a lack of press releases or filings with the Securities and Exchange Commission (SEC) today.
It’s also worth keeping in mind that KAVL is a penny stock. This comes from its low daily average trading volume, prior closing price of $1.33 per share and its market capitalization of $3.786 million.
Why That Matters to KAVL Stock
Being in penny stock territory opens KAVL shares up to certain vulnerabilities. That includes manipulation of Kaival Brands Innovations by certain traders.
If that’s what is happening to KAVL stock today, it makes it a risky bet for investors. It might not be long before the stock gives up its recent gains.
KAVL stock is up 77.4% as of Thursday morning.
Investors can find more of the latest stock market stories below!
We have all of the hottest stock market news ready to go on Thursday! That includes the biggest pre-market stock movers this morning and a look at some of the latest earnings reports today. All of that information is ready to go at the following links!
More Thursday 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.
