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trump media Shares rose on Tuesday as company insiders, including majority shareholder Donald Trump, received approval to begin selling shares as the company behind Truth Social seeks to break out of a downward spiral. The transaction was completed.
The company, trading as DJT on Nasdaq, ended the trading day up more than 5% at $12.79 per share.
Traders changed more than 21 million shares in the session, significantly higher than the 30-day average daily volume of 8.8 million shares, according to FactSet data.
Tuesday’s rally follows six consecutive days in the red, with Trump Media shares down more than 32%.
Trump Media (DJT) stock price
The plunge was just the latest negative impact in months of recession for Trump Media, which went public in late March after completing a merger with a special acquisition vehicle.
Trump Media stock has lost nearly 84% of its value since it soared to an intraday high of $79.38 per share on its Nasdaq listing.
On Monday, the stock fell to its lowest since before October 2021, when news of Trump Media’s planned merger with a SPAC (Digital World Acquisition Corporation) first broke. Published.
Trump currently owns nearly 57% of the company’s outstanding shares. Although the value of his stock has fallen by billions of dollars in recent months, it is still worth nearly $1.5 billion.
The Republican presidential candidate and other early investors in the company were barred from selling their shares until the lock-up agreement expired, and they did so at the closing bell Thursday.
The expiration of the lockup fueled a wave of speculation that early investors might try to dump the company’s stock, but the company’s only product, Truth Social, made only a modest profit in its most recent fiscal quarter. was producing.
Trump has vowed not to sell his stock.
However, Trump Media warned that other early investors also plan to cash out as soon as the lockup expires.
As of Tuesday morning, it was unclear whether the once-locked-up companies had attempted to sell since Thursday. However, in most cases these sales will trigger disclosure requirements by the U.S. Securities and Exchange Commission.