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 more than 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 on Friday morning, 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.
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.
This is a developing story, please check back for updates.
— CNBC’s Kevin Breuninger contributed reporting.