Fri Sep 20 12:34:50 UTC 2024: ## Trump Media Stock Plunges to New Low After Insider Sale Restrictions Expire
Shares of Donald Trump’s media company, Trump Media & Technology Group (TMTG), plummeted nearly 8% on Friday, hitting a new all-time low. The decline follows the expiration of a lock-up period on insider sales, which has allowed investors to sell their shares for the first time since the company’s market debut in March.
TMTG’s market capitalization has now fallen to $2.7 billion, a significant drop from its peak valuation of nearly $10 billion shortly after its launch. The company’s stock, which trades under the ticker symbol DWAC, closed at $13.55, its lowest closing price ever.
Trading volume was particularly high on Friday, with investors exchanging over $300 million worth of TMTG shares. This heightened activity is attributed to the possibility of insider selling, with major stakeholders like United Atlantic Ventures and Patrick Orlando, who own a combined 11% of the company, now free to sell their shares.
Concerns are growing that a large-scale sale by insiders could further depress TMTG’s stock price. Currently, only a third of the company’s shares are available for trading, meaning any significant selling could have a disproportionate impact.
Experts warn that increased selling activity could also lead to more short-selling, further driving down the stock price. Trump, who owns 57% of TMTG, has stated he has no plans to sell his shares, but his statements haven’t calmed investor fears.
TMTG’s initial surge in popularity was driven by Trump supporters and retail investors who saw it as a bet on his potential return to the White House. However, the stock has since lost most of its value, with the recent decline accelerating after President Biden announced his reelection bid.
The future of TMTG remains uncertain, with the possibility of further stock price declines looming large as insider selling commences.
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