The shares of Trump Media fell to their lowest levels in more than a year after a lockup contract expired that restricted sales of the company’s majority shareholder Donald Trump, and some other insiders.
Stocks trading on Nasdaq under the DJT symbol have fallen more than 6 percent in the early morning trading. This is the sixth day that the stock has declined.
DJT shares down by over 80% from March
Trump Media shares have fallen over 80% since its March debut.
On Monday morning the stock traded at its lowest intraday price since July 2023.
The company reached its highest market cap in March. Since then, it’s dropped to about $2.5 billion.
Trump’s 57% share of the company, valued at less than $1 billion in the first trading session.
Lockup restrictions that prohibited insiders selling their shares after Trump Media went public expired on Thursday at the end of trading.
The trading volume increased significantly after the lifting of restrictions. More than 14 millions shares were traded on Thursday, and more than 22 million on the following Friday. This is far above the average 30-day volume of 8 million shares.
In the 90-minute period that began trading on Monday, 7 million shares were traded.
Will Trump ever sell DJT?
Donald Trump has announced that he won’t sell his stock. Trump is a major figure in Truth Social, and it’s the main attraction to investors.
Trump had said earlier in September that he “had no intention” of selling, causing the price to briefly rise.
Other early investors such as ARC Global, United Atlantic Ventures and others, who together hold 11% of DJT’s shares, however, have made no similar promises.
A court decision in favor of ARC Global could also lead to an increase in stock issuance.
ICD reported this past month that Trump would likely sell his stock immediately upon the expiration date of the agreement, as he will need liquid funds to finance his campaign and to pay legal fees. He also needs to pay the penalties imposed in the past.
Stocks have fluctuated in value partly because of ongoing regulatory and investigative scrutiny around the SPAC merger.
Trump may also want to dispose of his stock due to its performance over the last few months, and to fluctuations in value due to investigations that are ongoing and the regulatory scrutiny around the SPAC merger.
Investors, market analysts, and followers will closely monitor Trump’s action in the coming weeks and days to determine the direction that Truth Social is heading in and the strength of its position in a competitive social media environment.
The post Trump Media shares (DJT), which plunged over 6% after the expiration of an insider locking agreement, may be updated as new information becomes available.
