Shareholders of Trump Media & Technology Group (DJT), the owner of Truth Social, have been on edge for several weeks. This trepidation has been driven by fear that majority owner and presidential candidate Donald Trump might unload a large number of DJT shares onto the market after the lockup restriction period for insiders ended on Thursday September 19th, 2024.
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However, as is often the case, market participants appear to have traded on the rumor, and that may have helped set the foundation for at least a short-term bounce higher.
The above chart showcases just how depressing it has been for DJT stock shareholders over the past few months. Except for a few 1-day bumps, it has been a pretty steady ride downward.
Prior to the DJT lockup expiry, ex-president Trump was on record as stating he would not sell “his stake” in the company. It is estimated that Trump owns nearly 60% of Trump Media & Technology Group. Any selling from Trump alone could cause enormous downward pressure on the stock, and this had shareholders very worried.
Lo and behold, shares of DJT have risen more than 30% in the past 5 trading sessions (September 24 to September 30), and also on fairly strong volume. In fact, the average trading volume of about 19.8 million shares over those 5 sessions is approximately double the average trading volume over the prior 20 trading days (most of them negative). The green volume bars in recent days will serve as reassurance to many investors, even as others see a much lower true economic value for DJT than where the stock is recently trading.
As shown on TipRanks, daily technicals for DJT continue to be bearish for the time being.
No Wall Street analysts offer coverage on Trump Media & Technology Group.
