Why These Penny Stocks Have Higher Than Average Volume Today
Finding penny stocks with high volume is a great way to see which ones are moving daily. It's worth noting that high volume is not always the best indicator of forward momentum. But, it does show what investor interest in a stock is. For those unfamiliar, volume is the number of times a stock trades hands on a given trading day. With penny stocks, this can range from the hundreds all the way to the hundreds of millions.
Normally, investors like to stick with penny stocks trading in the 800,000 and above volume range. This offers enough room for liquidity, which is how easily a stock can be traded. Often, high volume will indicate either company-specific or industry-specific news. If a stock's volume is more than double its average or more, there is usually an underlying reason.
However, this can often be the result of penny stock traders on Reddit, Twitter, or other social media sites. It's important to consider the effects of social media on penny stocks, as it can greatly shift volume in a given day. So, while volume is not the only indicator of performance, it can be a great tool to use when creating a penny stocks watchlist.
It's important to consider that volume can be indicative of a stock dropping in value as well. Because volume is the number of times a share is bought or sold, it can indicate bearish momentum in addition to bullish trends. With all of this in mind, let's take a look at four penny stocks to watch with high volume right now.
4 Penny Stocks With Higher Than Average Volume
- Digital Ally Inc. (NASDAQ: DGLY)
- Invesco Mortgage Capital Inc. (NYSE: IVR)
- SOS Ltd. (NYSE: SOS)
- Globalstar Inc. (NYSE: GSAT)
1. Digital Ally Inc. (NASDAQ: DGLY)
As a company, Digitial Ally is known for its design and manufacturing of some of the highest quality video analytic software and digital recording equipment. It's directly contracted with law enforcement, fleet safety, event security, and emergency response agencies. Digital Ally is known for setting the standard for automatic recording technology. Some of its major products include vehicle and body cameras, data storage systems, and quality hardware.
As of yesterday, June 7th, DGLY announced the formation of Digital Ally Healthcare, Inc. Although DGLY holds a placement in healthcare, its involvement is relatively limited. Before Digital Ally Healthcare, DGLY produced PPE products to aid in the pandemic. After seeing the widespread success of these products, the company decided that moving further would allow it to grow its product offerings and revenue streams. DGLY aims to grow its profit margins significantly in the near future to fuel a more sustained cash flow.
With this, it should be well-capitalized to engage in any business opportunities in the future. In addition to this announcement, the company states that this new side of its business has entered into a venture with Nobility LLC. The former will bring roughly $13.5 million in cash to the table, to begin making strategic acquisitions of RCM (revenue cycle management) companies in the medical industry.
"Digital Healthcare's venture with Nobility is a further expansion into the healthcare market. The venture's acquisition targets include the approximate 6,000 medical billing companies in the United States, most of which are relatively small and closely-held private concerns."Stan Ross, CEO of DGLY
company states that the first two target acquisitions could bring in a total revenue run rate of $5 million annually. The company expects that these deals will close within the next few months. Considering all of these exciting updates, DGLY holds a volume of around 3.6 million in morning trading on June 9th.
2. Invesco Mortgage Capital Inc. (NYSE: IVR)
IVR stock is pushing volume upwards of 43.6 million in morning trading. This is substantial and reflects its almost 13% gain at the same time. While there is no company-specific news sparking this gain, we can look at some previous events to try and deduce a reason. At the end of last month, Invesco announced the pricing of a public offering of common stock.
The offering, worth 37.5 million shares, will bring in gross proceeds of around $129 million. These proceeds will go toward the redemption of issued and outstanding shares of its 7.75% Series A Cumulative Redeemable Preferred Stock. Any additional funding will go toward both corporate purposes and the repayment of other debt obligations.
For those who don't know, IVR is a REIT or real estate investment trust working in financing and mortgage backing. Throughout the pandemic, the housing market was on a major decline. However, in the past six months, this has completely turned around. Now, it seems as though people cannot buy houses fast enough.
The result of this is companies like IVR pushing major gains in the past few months. YTD, shares of IVR stock are up by a solid 20%. After falling from over $18 in February 2020 by almost 90%, we see that this is a very welcomed gain. Considering its move today, will IVR stock be on your watchlist?
3. SOS Ltd. (NYSE: SOS)
SOS Ltd. is a penny stock that we've covered countless times in the past few months. While shares of the company were down last month, things are picking back up in June. With almost 15 million in volume in midday trading, shares of SOS stock are up by almost 10%.
Despite reporting very positive financial data last month, SOS stock is correlated with the price of Bitcoin and cryptocurrency overall. When BTC dropped from over $50,000 to under $36,000 in a matter of weeks, shares of SOS stock understandably dropped as well. In May, the company announced that it made operational more than 6,000 mining machines split between Bitcoin and Ethereum mining.
And interestingly enough, SOS claims that its mining operations utilize 90% renewable energy, which is very different from most others. Mining cryptocurrency is usually a very energy-intensive process, and most operations use fossil fuel-powered electricity. Finding renewable options has been a difficult and long process, but many companies are working to transition.
It's worth noting that because its stock price trades similarly to cryptocurrency, shares of SOS stock can be extremely volatile. But, the other aspects of its business such as insurance marketing and its safety products, could provide a different revenue stream as well. Whether this makes SOS Ltd. worth watching or not is up to you.
4. Globalstar Inc. (NYSE: GSAT)
With around 12.3 million in volume today, shares of GSAT stock are up by a mighty 4% or so at midday. For some context, Globalstar is a mobile satellite services provider. In its Q1 2021 earnings reported last month, GSAT hit analyst targets of a $0.02 loss per share. However, it did miss revenue estimates by around $5 million, bringing in $26.9 million in that period. Dave Kagan, CEO of Globalstar states that "Both service and equipment revenue [were higher] than pre-pandemic levels in the first quarter of 2020."
This was a big deal and remains a telling factor of the company's ability to grow even in these challenging times. One thing to consider right now is GSATs wholly-owned subsidiary, SPOT LLC. SPOT is a satellite messaging and emergency notification tech company, with partnerships around the world. At the end of May, SPOT announced a new partnership with Desert Vets Racing, to provide the group with goods and services.
These products will be in use for driver safety while in areas with no cell service. While this deal is not a major revenue supplier for GSAT, it does show the adoption abilities of SPOTs technology. And, GSAT is continuing to be a major part of the global tech and communications market, offering a large IoT pipeline of products. Considering its role as a tech penny stock, GSAT could be worth keeping an eye on in the future.
Which High Volume Penny Stocks Are You Watching?
Using high volume as an indicator is a great way to create a penny stocks watchlist. However, as stated before it should not be the only thing in use when finding a list of the best penny stocks.
Intraday volume is also a solid way to see which companies are moving the most in daily trading. It can identify short-term trends, recent news, and liquidity. Because of this, both retail and pro traders utilize this tool daily. Considering all of this, which high-volume penny stocks are you watching?
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