Infinity Pharmaceuticals (NASDAQ:INFI) stock is rocketing higher on Tuesday morning despite a lack of news from the biopharmaceutical company.
Investors seeking out news concerning shares of INFI stock this morning won’t find any new press releases or filings. There’s also been no new coverage from analysts that would explain today’s rally.
However, traders will likely notice that INFI stock is seeing incredibly strong trading this morning. As of this writing, more than 33 million shares have changed hands. That’s an impressive surge in trading volume compared to its daily average of about 920,000 shares.
One thing investors will want to keep in mind about this is INFI stock’s prior closing price of 9 cents per share. That, combined with its market capitalization of just $8 million, firmly place the shares in penny stock territory.
Why Does This Matter for INFI Stock?
Penny stocks are incredibly volatile due to how easily retail and day traders can manipulate them. The low entry point allows for this when combined with a small market cap. As such, investors can buy up large numbers of shares to boost the price before dumping it for profit.
Traders will also keep in mind that penny stocks are even more volatile outside of normal trading hours. That likely explains why traders are seeing so much movement from INFI stock in pre-market trading this morning.
INFI stock is up 84% as of Tuesday morning.
https://investorplace.com/2023/08/why-is-infinity-pharmaceuticals-infi-stock-up-84-today/
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