Trump Media stock closes up 5% in heavy trading after co-founders dump DJT shares

[mahatmakanejeeves]

Source: CNBC

POLITICS
Trump Media stock closes up 5% in heavy trading after co-founders dump DJT shares

PUBLISHED FRI, SEP 27 2024•1:13 PM EDT • UPDATED 4 HOURS AGO

Ece Yildirim
@IN/ECEDYILDIRIM/
@ECEDYILDIRIM1

KEY POINTS
• Shares of Trump Media closed up 5.58% on Friday, ending the day at $14.76 per share, after major shareholder United Atlantic • Ventures LLC dumped virtually its entire stake in the company on Thursday.
• UAV’s decision comes after the expiration of a lockup agreement on Sept. 19, which barred majority shareholder Donald Trump and other early investors from selling their shares.
• Following six straight trading days that saw the stock’s new 52-week low in the red, Trump Media shares snapped a losing streak Tuesday.

Shares of Trump Media closed up 5.58% on Friday, finishing the week at $14.76 per share, after major shareholder United Atlantic Ventures, LLC, sold nearly 11 million shares in the company on Thursday.

UAV, an investment partnership of former “Apprentice” contestants Andrew Litinsky and Wes Moss, dumped virtually its entire stake in the company, retaining just 100 shares. Trump Media operates the social media app Truth Social, and its largest shareholder is former president Donald Trump.

Litinsky and Moss co-founded the social media company with Trump in 2021. The two have since fallen out with Trump and engaged in legal disputes with Trump Media over their shares. … UAV’s decision to sell its 5.4% stake comes after the expiration of a lockup agreement on Sept. 19, which had barred Trump and other early investors from selling their shares.

Thursday’s Securities and Exchange Commission filing did not disclose how much UAV made from offloading its shares. But based on the price range that DJT has sold for since the lockup expired, UAV may have received between $128 million and $170 million for its stock.

{snip}



Read more: https://www.cnbc.com/2024/09/27/trump-media-stock-jumps-higher-after-co-founders-dump-djt-shares.html

[Shermann]

1. Sooooo why does the price go up when shares are being dumped? nt

[Diraven]

2. I read somewhere

That a lot of these insiders have deals for the Trump Media company itself to buy back their shares at prices well above the current market price. Not sure if that's what's happening here though.

[Pluvious]

3. My best guess...

It was only a bit over 5%
And it's likely the market had already priced it in.

The rise of today's trading price is maybe from some parties with deep pockets and a motivation to keep it pumped up ?

If someone, say a wealthy dictator or something like that, wanted to funnel "clean wealth" to TSF, propping up the crappy stock so TSF could cash in a portion of his stake, would be a legal method to do so.

( shrug )

[Lucky Luciano]

11. If the selling is done, it could bounce.

Major seller done selling could be a reason to buy. t&$@p’s shares still out there though. He will be a much bigger seller eventually.

[Shermann]

12. I'm guessing the news that Trump is holding on to his shares weighed more heavily than the dumping. nt

[Jack Valentino]

13. Part of that is possibly a lot of traders buying to cover/close out their short positions

previously taken in the stock. At some point they have to buy actual shares to cover what they previously "sold" by borrowing shares, which have to be returned to the owners of the shares.

[Shermann]

15. I thought about it being a short squeeze, but that's typically triggered by a lot of buying and not selling. nt

[relayerbob]

4. Follow the money

Usually big dumps by insiders don't result in price increases. Someone poured a ton of cash into there to prop it up, anyone want to bet on what country it came from? I smell money laundering

[Brother Buzz]

6. Dead Cat Bounce phase give a little wiggle room for...

The Fat Cats Rats to quietly cash out and exit the back door

[sakabatou]

7. SELL! SELL! SELL!

[COL Mustard]

8. As I've said before

You know that Trump’s holdings are structured so that he, personally, doesn’t lose any money. His suckers investors, well that’s a different story.

[Smackdown2019]

9. How poetic

Isnt the month of October a bad for stocks?

Wouldn't surprise any of us, these stocks would cause a major crash, kinda like junk bonds...

If this crashs, Wouldn't hurt any anti-trumpers. Just the 33%

[IronLionZion]

10. That whole company sounds sketchy

like some sort of money laundering scheme. Buy high and sell low.

[FakeNoose]

14. Chump's "partner" is hardly a partner - they're lucky they had shares to sell

UAV started up the company and got it off the ground in 2021, when nobody else wanted anything to do with Chump. He thanked UAV for their efforts by taking them to court and trying to cheat them out of their shares in the company. It was only by court order that Chump was prevented from screwing them.

Nice partner - can anyone blame them for selling their shares and getting out?

Biggest lesson here is ... NEVER have any business dealings with Chump. Everything he touches dies.