The award for the most impressive mover today has to go to Solar Ascension (NASDAQ:ASTI). This small-cap supplier of photovoltaic products used in solar chargers and other technologies is soaring today. At one point, ASTI stock jumped more than 100%, before giving up some of its gains in the early afternoon.
This incredibly violent push higher triggered several stoppages during the day. So, it looks like there is something afoot with this solar-related name.
What exactly it is is hard to say. There is little news on this name today. However, given the incredible volume size underlying today’s move, it is clear that this relatively low afloat stock is being targeted by whales.
One thing to note about Ascent is a recent filing with the United States Securities and Exchange Commission (SEC) a few days ago related to the resale of its shares and the exercise of warrants. It should net the company $75 million in growth capital, which investors seem to appreciate.
With ASTI shares trading at a market cap of around $200 million after today’s rise, that may be what the whales are jumping on right now. Let’s see if ASTI stocks are worth looking into right now.
Is ASTI stock a buy it now?
Certainly, Ascent’s underlying technologies could offer attractive benefits to long-term investors. This company’s core product line is essential for various market growth sectors including aerospace, defense and consumer/OEM applications. So, when it comes to a speculative growth investment, investors have good reason to watch ASTI stocks.
That said, today’s rally is something considerably out of the ordinary. On little news, any sort of rally to this degree should be taken with a grain of salt. It is likely that a big buyer stepped in here and took over the float of this title in no time. Aggressive investors and algos may have picked up on this trend and carried it higher. That said, it remains to be seen how well this rally can continue.
So until we get some sort of clarity on what drove this move, ASTI stocks are the ones I think investors want to be very careful with. What goes up in an elevator can go down just as fast, especially in this market.
As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.