Healthcare Triangle (HCTI), a penny stock, is extending its rally in Friday’s pre-market session, with the stock up another 48% as of the latest check. This follows a massive 115% surge on Thursday, when shares closed at $0.05 and trading volume topped 3 billion shares. That accounted for roughly 15% of all shares traded across U.S. exchanges on Thursday, according to Bloomberg data.
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The rally showed signs of a meme stock move, including sharp price swings in the stock price. The stock also gained traction across retail investor forums and social media, fueling more interest.
Thursday’s action made HCTI one of the most actively traded stocks on the market. The total trading value for the day reached around $150 million, nearly seven times Healthcare Triangle’s market cap.
Retail Buzz, But No News from the Company
The surge came despite no new announcements from Healthcare Triangle. The company, which provides cloud and data analytics solutions to the healthcare and life sciences industries, did not release any news or comments to explain the sudden increase in stock price.
Still, online traders appear to have zeroed in on the stock, citing its low float and penny-stock status as reasons for its big move.
But it’s not just Healthcare Triangle that has joined the meme stock rally. Others, such as American Eagle (AEO), Krispy Kreme (DNUT), and Opendoor (OPEN), have also taken off lately. These rallies often come without news, instead being fueled by meme stock traders who seek out highly shorted stocks, low-priced shares, and other companies they believe are worth an investment.
Is HCTI Stock a Buy, Sell, or Hold?
TipRanks’ AI analyst has given Healthcare Triangle a Sell rating, pointing to poor financials, declining revenue, and ongoing losses. Also, valuation remains a concern, with a negative price-to-earnings ratio and no dividend. While the recent appointment of a new CFO is a positive step, the analyst believes it isn’t enough to improve the overall outlook.
