Trump Media & Technology Group Corp. (NASDAQ: DJT) experienced a significant drop in its stock price, reaching a new 52-week low during trading on November 17, 2023. The stock fell to as low as $10.47 before recovering slightly to close at $10.85. This decline followed the announcement that Eric Swider, a director of the company, sold 5,200 shares at an average price of $10.59, totaling $55,068.
Following this transaction, Swider’s remaining stake in the company decreased to 18,841 shares, valued at approximately $199,526, reflecting a 21.63% reduction in his position. The sale was reported in a document filed with the Securities & Exchange Commission.
Market Reactions and Analyst Ratings
The overall market response to the insider sale has been negative. According to Weiss Ratings, the company has been assigned a “sell (e+)” rating, indicating a lack of confidence from market analysts. Currently, the consensus rating for Trump Media & Technology Group is “Sell,” with one analyst specifically advising against purchasing the stock. Following the recent sell-off, the company’s market capitalization stands at approximately $2.88 billion, with a price-to-earnings ratio of -17.44 and a beta of 4.56.
Additionally, the stock has seen a 4.5% decline on the day of the insider sale, further compounding investor concerns. The company’s fifty-day moving average price is $15.55, while the two-hundred-day moving average is at $18.22.
Institutional Investors Positioning
Despite the recent turbulence, some large investors have taken strategic positions in the company. Spire Wealth Management significantly increased its holdings by 628.1% during the second quarter, now owning 29,050 shares valued at $524,000.
Other notable investors include the Swiss National Bank, which raised its stake by 6.7% in the first quarter, now holding 168,100 shares worth approximately $3.3 million. D.A. Davidson & Co. entered a new position valued at around $405,000, while Bank of New York Mellon Corp. increased its holdings by 19.2% to 231,726 shares, valued at approximately $4.53 million.
Overall, institutional investors currently own 4.29% of Trump Media & Technology Group’s stock, reflecting a cautious interest in the company’s future.
Founded on March 28, 2024, and headquartered in Sarasota, FL, Trump Media & Technology Group engages in operating social media platforms and technology services, with its notable brands including TRUTH Social, TMTG+, and TMTG News.
