Shares of medical devices maker ShockWave Medical (NASDAQ: SWAV) jumped by as much as 10% on Wednesday and closed the day’s trading session up by 5.2%. The company did not report any news of note, though, so what gives?
One possible explanation is that ShockWave Medical simply rode the wave of the market today. All three major U.S. market indexes were rising early today but they all ended up giving up some of these gains by the end of the day, with the Dow Jones Industrial Average even closing slightly in the red.
Investors are used to daily fluctuations in the prices of stocks. And sometimes, securities rise or fall sharply for no apparent reason. When that happens, trying to figure out the catalysts behind these gains (or losses) may not be the best use of our time. Instead, it’s important to focus on the investment thesis of the company in question.