Some Insiders Have Been Selling Trump Media Stock, But What Is Donald Trump Doing?
Trump Media (DJT 4.11%) The stock saw heavy selling during last week’s trading session. The company’s stock price closed the period down 11.9% from the previous week’s market close, according to data from S&P Global Market Intelligence.
Trump Media continued to see massive sell-offs last week as investors took profits on the eve of the election. Three company insiders sold shares, which appears to have prompted other investors to sell their shares as well.
Insider sales send Trump Media stock lower
Recent filings with the Securities and Exchange Commission (SECOND) show that some Trump Media insiders decided to sell shares of the company after Donald Trump’s victory in the 2024 presidential election. On November 8 and 11, Chief Financial Officer Phillip Juhan sold 384,000 shares. Meanwhile, Director Eric Swider sold about 136,000 shares on Nov. 8 and General Counsel Scott Glabe sold about 16,000 shares the same day. In total, combined sales totaled approximately $16 million.
Will Trump soon abandon his actions?
Donald Trump remains the company’s largest shareholder, and investors are closely watching and speculating on what moves the new president might take with the shares. So far, Trump hasn’t sold any shares of the company — and it appears he has no plans to do so in the near future. In a post published on the Truth Social platform, which is the centerpiece of the company’s activities, Trump criticized allegations that he would sell his shares and said he had no plans to get rid of his participation.
If Trump were to sell stock, it is likely that the company’s stock price would fall. But the company’s valuation could face downward pressure even if the president-elect maintains his holdings.
With the election now over, it’s unclear what the next major bullish catalyst for Trump Media stock might be. Valued at approximately $6.1 billion, the company trades at exorbitant valuation multiples. Through the first three quarters of this year, the company generated just $2.61 million in sales. Although the company is still in the early stages of development and will likely see sales momentum pick up, the stock looks very expensive relative to the company’s recent sales performance.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the securities mentioned. The Motley Fool has a disclosure policy.