As former President Donald Trump’s $1.7 billion stake in Trump Media is set to become unrestricted soon, questions arise about whether other insiders will follow suit and sell their shares. Trump Media & Technology Group, in which the former president holds a 57% stake, has been a topic of speculation and scrutiny in recent weeks.
While Trump has stated that he has no plans to sell his shares, major stakeholders like United Atlantic Ventures and Patrick Orlando, who together own 11% of the company, may decide to cash in. The potential sale of shares by insiders could provide valuable insights into Trump’s intentions and the company’s future direction.
According to a provision in the company’s prospectus, insiders could sell their shares if the stock price ends the trading session at or above $12. Currently, the stock is trading at $15, down 4%, following a downward trend driven by concerns over the end of the lock-up period since the company’s debut in March.
Recent legal disputes regarding ARC Global’s stake in Trump Media and lawsuits filed by Truth Social cofounders against TMTG add more complexity to the situation. As the company’s value soared to nearly $10 billion post IPO, it has attracted attention from retail traders and speculators betting on Trump’s political future.
Despite its high valuation, with its stock trading at over 1,000 times its revenue, analysts warn of the potential repercussions of a partial stake sale on the stock price. The company’s long-term prospects are closely tied to Trump’s electoral chances, making it a high-stakes investment for both insiders and investors.
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