Trump Media closes at 52-week low as investors wait to see if he’ll sell stock
DJT down more than 65 percent since July high after Trump was subject of failed assassination attempt
Your support helps us to tell the story
This election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.
The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.
Help us keep bring these critical stories to light. Your support makes all the difference.
Trump Media shares fell to a 52-week low on Friday, a day after former President Donald Trump, the majority shareholder, was allowed to start selling his stocks in the company.
Other early investors had also been prevented from selling their shares because of the “lockup” restrictions imposed on them.
Trump media, which trades under the ticker “DJT,” closed down 7.82 percent on Friday, reaching $13.55 per share, according to CNBC.
There was a heavier-than-average trading volume on Friday, with the closing price of DJT taking longer than usual to determine after almost 20 million shares were traded.
It’s set to take a number of days before U.S. Securities and Exchange Commission filings show if the number of trades was because of early investors getting rid of their shares at the end of the lockup period or if there was a higher than usual number of retail investors trading Trump Media stocks.
Trump Media went public in March, and it was at this point that the lockup agreement was put in place. The company went public after a merger with Digital World Acquisition Corp, a blank-check company.
Trump Media has stated in regulatory filings that the lockup period coming to an end could spur a flurry of sales. But they have also said that market perception that a sell-off was imminent could push down the share price even if early investors were not the ones trading away their stocks.
At close on Friday, Trump’s 114,750,000 shares were valued at $1.5bn. Last week, the former president said he was not intending to sell his shares at the end of the restrictions.
Trump saying during a press conference in California on September 13 that he has “absolutely no intention of selling” prompted the stock to rise 25 percent before closing more than 11 percent up – a rise that was obliterated this week as DJT saw a downturn.
Trump Media closed at the lowest level it has seen since entering the Nasdaq in March – down over 20 percent from the start of the week. It’s down more than 65 percent since it’s July high after Trump was the subject of a failed assassination attempt in Butler, Pennsylvania.
When the markets closed on Friday, Trump Media’s market cap was at $2.7bn, according to CNBC.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments