Former President Donald Trump announced that he is not selling shares in his social media company, Truth Social, causing stock prices to soar. Trump, along with other insiders in Trump Media & Technology Group, will have the option to sell shares as the lock-up restrictions are set to expire soon. Trump made it clear that he has no intention of selling his shares, stating that he loves the company. His comments resulted in a 25% increase in the company’s share price, with further gains in late afternoon trading.
Trump’s statement regarding not selling his shares had a significant impact on the value of Trump Media, with the stock price increasing by 19%. The company’s share prices had been declining due to concerns over the expiring lock-up restriction and uncertainties related to the upcoming White House race. Despite the volatility, Trump reassured that he is not leaving the company, leading to positive investor sentiment and a surge in stock prices. The lock-up period is set to expire soon, allowing Trump to potentially sell shares, although experts warn against dumping a significant portion to avoid crashing the share price.
Regulatory filings indicate that the lock-up period will end on September 19 if the closing share price remains above $12. This could potentially enable Trump to sell some of his shares, considering he currently holds 57% of the outstanding shares in Trump Media. His stake in the company is valued at $1.8 billion based on the closing price from the previous day. Despite the recent declines in the company’s value, Trump’s significant ownership stake gives him considerable influence over the company’s future and potential stock performance.
The company’s value had been declining sharply in recent months as a result of various factors, including concerns over the expiring lock-up restriction and uncertainty surrounding the upcoming election. Following Tuesday night’s debate, where Trump’s performance was perceived as shaky, the stock price hit record lows. However, Trump’s announcement that he is not selling his shares provided a much-needed boost to investor confidence and resulted in a significant uptick in the company’s stock price. While the future remains uncertain, Trump’s strong ownership position and decision not to sell his shares suggest a potential turnaround for Trump Media.
Trump’s decision to retain his shares in Truth Social has implications for the company’s future performance and overall valuation. With the lock-up restriction set to expire soon, Trump will have the option to sell some of his shares, although the extent of his divestment remains unclear. Despite the recent fluctuations in the company’s stock price, Trump’s commitment to the company and his significant ownership stake are factors that could influence investor confidence and shape the company’s trajectory moving forward. As Trump Media continues to navigate challenges and uncertainties, Trump’s presence and decision-making will likely play a crucial role in determining the company’s future success.
