Trump Media shares fell to a 52-week low on Friday, a day after former President Donald Trump, the majority shareholder, was allowed to start selling his stocks in the company.
Trump media, which trades under the ticker “DJT,” closed down 7.82 percent on Friday, reaching $13.55 per share, according to CNBC.
Trump Media went public in March, and it was at this point that the lockup agreement was put in place.
Trump Media has stated in regulatory filings that the lockup period coming to an end could spur a flurry of sales.
Trump Media closed at the lowest level it has seen since entering the Nasdaq in March – down over 20 percent from the start of the week.
A day after former President Donald Trump, the company’s majority shareholder, was given permission to begin selling his stock, shares of Trump Media hit a 52-week low on Friday.
Other early investors had also been prevented from selling their shares because of the “lockup” restrictions imposed on them.
Using the ticker “DJT,” Trump Media closed Friday at $13 points55 per share, down 7.82 percent, according to CNBC.
It took longer than usual to determine the closing price of DJT on Friday due to a higher-than-average trading volume, with nearly 20 million shares traded.
It will likely take a few days before U. s. Documents filed with the Securities and Exchange Commission reveal whether the volume of trades was attributed to early investors selling their shares after the lockup period ended or to a greater than normal number of retail investors buying and selling Trump Media stocks.
The lockup agreement was established at the time of Trump Media’s public announcement in March. After combining with blank-check company Digital World Acquisition Corp, the business went public.
According to Trump Media’s regulatory filings, the impending end of the lockup period may result in a spike in sales. However, even in cases where early investors did not sell their stocks, they have stated that the market’s perception of an impending sell-off could still cause the share price to drop.
One point five billion dollars was the closing value of Trump’s 114,750,000 shares on Friday. When the restrictions ended last week, the former president declared he had no intention of selling his shares.
When Trump stated at a press conference in California on September 13 that he has “absolutely no intention of selling,” the stock increased by 25% and closed higher by more than 11%; however, this week’s decline in DJT completely erased the gains.
With a decline of more than 20 percent from the beginning of the week, Trump Media closed at the lowest point it has seen since joining the Nasdaq in March. After Trump was the target of an abortive assassination attempt in Butler, Pennsylvania, it has dropped more than 65% from its peak in July.