Penny stock Healthcare Triangle (HCTI) stock surged 115% on Thursday to close at $0.05, with retail traders driving heavy activity and pushing trading volume above 3 billion shares. That accounted for roughly 15% of all shares traded across U.S. exchanges on Thursday, according to Bloomberg data. The rally showed signs of a meme stock surge. The stock saw big price swings, very high trading volume, and quick reversals. It also started trending on retail investor forums and social media.
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This explosive move made HCTI one of the most traded stocks on the market yesterday. However, some of the momentum cooled later in the session, with shares dipping slightly in after-hours trading.
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.
