G Medical Innovations (NASDAQ:GMVD) stock is on the rise Tuesday despite a lack of news concerning the mobile health and telemedicine solutions company.
There are no new press releases, or filings with the Securities and Exchange Commission (SEC), that explain today’s stock movement. Likewise, no analysts have offered new coverage recently that would result in today’s GMVD stock rally.
However, investors will note that shares of GMVD stock are seeing heavy trading on Tuesday. That has more than 6 million shares of the stock changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 371,000 shares.
One thing traders will keep in mind is that GMVD is a penny stock. This comes from its low market capitalization of just $1.355 million, as well as its prior closing price of only 18 cents per share.
Why That Matters To GMVD Stock
With GMVD being a penny stock, there are certain risks that traders face when investing in the company. That includes the unexplained volatility that’s happening today. It’s likely this is from retail and day traders pumping up the shares.
That might seem like a good thing at first, and some investors may be tempted to jump on the rally. However, it also means the stock is likely going to give up this ground in the near future as those traders sell their shares. That could leave some unlucky investors holding the bag.
GMVD stock is up 31.8% as of Tuesday morning but is down 93.8% year-to-date as of Monday’s close.
Investors can check out more of the latest stock market stories worth reading about below!
We’ve got all of the hottest stock market news that traders need to know about on Tuesday! Among that is why shares of Delcath Systems (NASDAQ:DCTH) stock is up, the biggest pre-market stock movers this morning, and more. All of that news is ready to go at the following links!
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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
