Agrify (NASDAQ:AGFY) stock is rocketing higher on Monday alongside heavy pre-market trading of the cannabis hardware and software cultivation company’s shares.
As of this writing, more than 17 million shares of AGFY stock have changed hands, well above the company’s daily average trading volume of about 1.1 million shares. Investors will also note that Agrify’s float is sitting at 7.17 million units.
It’s unclear what’s causing this increased interest in AGFY stock. There are no new press releases or filings with the Securities and Exchange Commission (SEC) that would do so. There’s also no analyst coverage that would cause today’s rally.
One thing that investors will want to keep in mind is that AGFY is a penny stock. This comes from its low price closing price of 25 cents and its market capitalization of only about $3.586 million.
What That Means for AGFY Stock
Agrify, being a penny stock, brings with it certain vulnerabilities. That includes the potential of a pump and dump from retail and day traders. It could also be up alongside speculative traders buying its shares.
No matter the case, investors will be wary as penny stocks can be incredibly volatile. While AGFY stock is up now, it
