Trump Media & Technology Group Corp.'s stock dropped to its lowest level since it went public in March Friday, as a ban on stock sales lifted.
Shares of Donald Trump's media company fell to a new low on Friday morning as a ban on insiders selling their shares expired, extending this week's sharp losses. Restrictions on insider sales of Trump Media & Technology Group Corp (NASDAQ:DJT) shares expired after Thursday's market close.
Shares of Trump Media sank more than 7% Friday morning, hitting a new 52-week low one day after lockup restrictions expired. Until now, the lockup provision had prevented TMTG's majority shareholder, former President Donald Trump, and other early investors from selling their shares.
Shares of Trump Media & Technology Group fell more than 5% in premarket trading on Friday, after a ban preventing former President Donald Trump from selling shares in the Truth Social parent firm expired, even as Trump said he would not sell his stake.
Trump Media hit a record low Friday with insiders allowed to sell DJT stock. Former President Donald Trump, who owns a majority, says he won't sell.
Until now, a lock-up period has barred inside investors from selling shares.
The six-month lockup period was put in place after Trump Media consummated its merger with a blank-check company.
Trump Media & Technology Group shares slid to another record low Thursday but recorded a closing price high enough to end the ban prohibiting former President Donald Trump from selling shares in the company—though he has said he does not intend to offload his stake in the social media firm.
Shares of Truth Social's parent company fell Thursday, extending the latest round of declines for Trump Media & Technology Group (DJT) since it took its current form in late March.
Short selling of DJT stock has risen ahead of the lockup expiration on insider sales on Friday.
While former U.S. President Donald Trump has said he will not sell his $1.7 billion stake in Trump Media after restrictions likely expire on Thursday, other insiders could soon cash in their gains.
Search for "Trump Media stock" and a flood of negative articles appear. The writers see little hope, and many say Donald Trump is going to sell despite his press conference assurance to hold his 115 million shares.