The stock market is buzzing with news about Trump Media & Technology Group Corp (DJT), the parent company of the social media platform Truth Social. The company’s shares are experiencing a dip on Thursday as a key restriction on insider selling comes to an end.
This lockup agreement, in place for approximately 180 days, prohibited former President Donald Trump, who holds a majority stake in Trump Media, and other insiders from selling their shares. The expiration of this restriction, which is happening today, could potentially lead to a surge in selling pressure and increased volatility in the stock price.
Since its public debut in late March, Trump Media has garnered significant attention from retail investors, with shares trading as high as $79. The company’s stock has seen its fair share of volatility, with a notable jump last week after Trump declared he had no intention of selling his stake.
However, the stock has also been under pressure recently, with shares falling more than 6% on Tuesday following a Delaware judge’s ruling that Trump Media breached a contract with ARC Global, requiring the company to grant the early investor a larger share of its stock. ARC Global reportedly owns a 4.77% stake in Trump Media, and these shares are now likely to be available for sale as the lockup period expires.
With the lockup agreement now gone, investors are closely watching how the stock reacts. The upcoming days will be crucial to see if the share price stabilizes or continues to experience further volatility.
