Aug 22, 2024, 12:00 AM
Aug 22, 2024, 12:00 AM

Trump May Sell DJT Stock Soon

Highlights
  • Trump is considering selling his DJT stock in the coming weeks.
  • Trump Media made its debut on the Nasdaq under the ticker DJT after a merger.
  • The potential sell-off could have implications for the stock market.
Story

Former President Donald Trump is poised to sell shares of Trump Media, the company he predominantly owns, which operates the social media platform Truth Social. Trump holds approximately 114.75 million shares, representing nearly 59% of the company, valued at over $2.6 billion. However, the potential sale comes with significant risks for both Trump and Trump Media, as his stake constitutes a substantial portion of his net worth, according to Forbes. Currently, Trump and other early stockholders are under a "lockup agreement" that prevents them from selling shares for about 180 days following the company's public listing. This lockup could be lifted earlier if the stock price remains at or above $12 per share for 20 trading days within a specified 30-day period, starting Friday. If market conditions allow, the lockup could expire as soon as September 20. While Trump has not disclosed his intentions regarding the shares post-lockup, concerns arise about the potential impact of his sales on the stock price. Trump Media's regulatory filings indicate that the sale of a significant number of shares could lead to a decrease in market value. The company has already experienced a 71% drop in share price from its peak of nearly $80 following its merger. Investors view shares in Trump Media as a means to support Trump's political ambitions, particularly as he campaigns against Vice President Kamala Harris. However, recent campaign challenges have reportedly affected the stock's performance, raising questions about its future stability.

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