Why Is Akumin (AKU) Stock Up 31% Today?

Akumin (NASDAQ:AKU) stock is taking off on Thursday alongside heavy trading of the company’s shares this morning.

There are no new press releases or filings with the Securities and Exchange Commission (SEC) that explain why shares of AKU stock are on the rise this morning. Additionally, no analysts have offered new coverage that would serve as a catalyst for today’s movement.

Instead, it looks like stockholders can thank heavy trading for the rise in AKU’s price on Thursday. As of this writing, more than 10 million shares of the company’s stock have been traded. For the record, that’s well above its daily average trading volume of about 138,000 shares.

Before making any investments in AKU stock, investors will want to keep in mind its low trading price and market capitalization. It closed out Wednesday at about 18 cents per share and has a market cap of $16.389 million.

Why These Matter To AKU Stock

Akumin’s low share price and market capitalization make it a penny stock. Penny stocks are much more susceptible to manipulation from traders. Oftentimes, that happens at the same time as large trading volume.

This means that the rally AKU stock is seeing on Thursday may not last. It could be a case of retail traders pumping up the stock, only in preparation for dumping it later. If that happens, it could leave unlucky traders holding the bag.

AKU stock is up 31% as of Thursday morning.

Investors seeking more of the most recent stock market news will want to stick around!

InvestorPlace is home to all of the hottest stock market news for Thursday! Among that is what’s moving shares of Mullen Automotive (NASDAQ:MULN) stock higher, the biggest pre-market stock movers this morning, and more. You can catch up on all of this news at the following links!

More Thursday Stock Market News

• Why Is Mullen Automotive (MULN) Stock Up 45% Today?
• Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
• Why Is Mullen (MULN) Stock Up 65% Today?

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

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