China Liberal Education Holdings (NASDAQ:CLEU) stock is soaring on Friday despite a lack of recent news surrounding the company.
The increase in CLEU stock comes alongside heavy trading of the shares. As of this writing, more than 50 million shares of the stock have changed hands. To put that in perspective, the company’s daily average trading volume is only about 430,000 shares.
So why exactly are investors taking such a strong interest in CLEU stock today? There are actually a couple of reasons behind today’s massive movement for the stock.
Starting off, the company noted that insider stakes in the company are at 56%. This was mentioned during its 13G filing yesterday. While that’s likely got something to do with the jump, that was already revealed in a filing last year.
Instead, the real culprit of the increase is likely traders in private chats pumping up shares of the stock. Social media talk seems to suggest as much. This has been a growing trend in recent months with Discord groups dedicated to pumping and dumping stocks.
Due to the private nature of Discord groups, it’s hard to pin down where exactly the push into CLEU stock came from. However, once news of the pump spreads to larger social media it typically creates interest in stocks as other investors jump on the bandwagon looking for profits.
CLEU stock was up 44.5% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.