This has more than 12 million shares of ZCMD stock changing hands as of this writing. That’s a massive leap over its daily average trading volume of about 58,000 shares. Investors will also note it has a low float at 1.29 million units.
All of this movement comes without any clear news from Zhongchao. That includes a lack of press releases or filings with the Securities and Exchange Commission (SEC). There’s also no analyst coverage that would cause the stock to rally today.
What is worth keeping in mind is ZCMD’s status as a penny stock. This comes from its prior closing price of $1.09, low daily average trading volume and its market capitalization of only $2.748 million.
What That Means for ZCMD Stock
Being a penny stock opens Zhongchao shares up to certain vulnerabilities. Among these is volatility from heavy trading even with a lack of news.
It’s possible this is tied to speculative traders buying the stock while its low. It could also be an attempt at a pump and dump by retail and day traders. One thing is for sure, traders will want to be careful about taking a stake in the company right now.
ZCMD stock is up 52% as of Wednesday morning.
There are more stock market stories investors need to know about below!
We have all of the hottest stock market news ready to go on Wednesday! That includes the biggest pre-market stock movers this morning and other news. All of that is available 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.