Republican presidential nominee and former U.S. President Donald Trump looks on during a rally at Nassau Veterans Memorial Coliseum, in Uniondale, New York, U.S., September 18, 2024.
Brendan Mcdermid | Reuters
Shares of Trump Media sank as much as 7% Friday morning, hitting a new 52-week low one day after “lockup” restrictions expired, which had previously prevented its majority shareholder, former President Donald Trump, and other early investors from selling their shares.
Trading volume was heavier than average Friday, with more than 11 million shares changing hands before 12:45 p.m. ET.
But it will likely be several days before public filings with the Securities and Exchange Commission reveal whether this volume is due to early investors selling shares now that the lockup period is over, or merely a higher than average number of retail investors trading the stock.
The lockup agreement first took effect when Trump Media went public in March, following a merger with a blank-check firm called Digital World Acquisition Corp, or DWAC.
The company has acknowledged in regulatory filings that the end of the lockup could spur large sales of the company’s stock, which trades under the ticker “DJT.”
But even if insiders weren’t the ones selling, the company has said that a perception by the markets that a sell-off was underway might drive down DJT’s stock price.
Trump, who’s 114,750,000-share stake in Trump Media was worth almost $1.6 billion as of mid-morning Friday, said last week that he would not sell his shares when the restrictions lifted.
“I have absolutely no intention of selling,” he said at a press conference in California on Sept. 13.
The Republican nominee’s announcement caused the stock to surge, climbing as much as 25% before closing up more than 11%. But DJT’s slump this week has erased those gains.
As of 12:45 p.m., Trump Media was down 5.5% and trading at a price of $13.90 per share. The slide puts shares down 20% from where it opened the week.
Its intraday low came shortly after 10 a.m., when the share price dropped to $13.50 — a level not seen since July 2023, when the stock was still DWAC.
Friday’s sell-off extends DJT’s months-long slump that has seen the stock more than 65% since its most recent high in July, which came after Trump survived an assassination attempt against him at a campaign rally in Pennsylvania.
Trump Media’s market cap stood at nearly $2.8 billion as of 12:45 p.m.
This is a developing story, please check back for updates.
— CNBC’s Kevin Breuninger contributed reporting.