Shares of Advanced Health Intelligence Ltd. (NASDAQ: AHI) surges more than 12% in the pre-market today, even in the absence of recent news from the healthcare company.
Neither Advanced Health Intelligence nor the Securities and Exchange Commission (SEC) have issued press releases or filings explaining the sudden gains. Furthermore, the company has not received any new analyst coverage that could account for the positive momentum observed on Monday.
The primary factor driving this morning’s increase in AHI stock appears to be heavy trading activity. Over 130 million shares of the stock have been exchanged at the time of this report. To provide context, the company’s average daily trading volume is substantially lower, standing at approximately 2,070,311 (2.07 million) shares.
Considering the low average trading volume and the stock’s previous closing price of 31 cents, it becomes evident that AHI qualifies as a penny stock. In addition, Advanced Health Intelligence’s market capitalization of $9.81 million further supports this classification.
Why Does That Matter for Advanced Health Intelligence Ltd. (AHI) Stock?
Penny stocks are known for their extreme volatility, often influenced by speculative traders who artificially inflate the stock’s value and then quickly sell their holdings. This pattern is particularly prevalent during non-trading hours. It is plausible that this phenomenon is occurring this morning, resulting in a sudden surge in AHI stock value.
During pre-market trading on Monday, AHI stock has risen by 12.39%. It is worth noting that the stock closed Friday with a remarkable year-to-date increase of 431.71%.