Source: shutterstock.com/Dmytro_Yushchenko
Chijet Motor (NASDAQ:CJET) stock is on the rise today, fueled by intense pre-market trading activity in shares of the new energy vehicle company.
Trading of CJET stock has surpassed 8 million shares at the time of this report, significantly higher than the average daily trading volume of about 354,000 shares. Notably, Chijet Motor’s float stands at 15.2 million units.
The stock surge today occurs without any significant updates from Chijet Motor, including the absence of press releases or SEC filings. Moreover, there is no analyst coverage to explain this surge.
Traders should be aware that CJET is categorized as a penny stock due to its previous closing price of 29 cents per share and a market capitalization of $46.591 million.
Analyzing the Impact on CJET Stock
Heavy trading activity in a penny stock often signals a pump-and-dump scheme. The current situation with CJET shares might align with this pattern, especially given the lack of substantial company-related news.
Investors and traders need to exercise caution when considering an investment in Chijet Motor at this juncture. Despite the current uptrend, the stock’s volatility could lead to swift reversals.
CJET stock is currently up by 21.1% as of Friday morning.
For the latest developments in the stock market, investors are encouraged to stay informed with our up-to-date market coverage! Learn about the surge in Foxo Technologies (NYSEMKT:FOXO) stock, the top pre-market movers, and more by clicking on the links below!
Further Insight into Friday’s Stock Market
About Penny Stocks and Low-Volume Stocks: With rare exceptions, InvestorPlace refrains from discussing companies with a market cap below $100 million or those trading fewer than 100,000 shares daily. These “penny stocks” are often playgrounds for fraudulent activities and market manipulation. In cases where commentary on such stocks is published, our writers will disclose this information and highlight associated risks.
For more information: Penny Stocks — How to Profit Without Getting Scammed
As of the publication date, William White holds no direct or indirect positions in the securities mentioned. The opinions expressed in this article are solely those of the author, adhering to the InvestorPlace.com Publishing Guidelines.