Trump Media stock drops as lockup expiration set to give the former president clearance to sell shares
- Trump Media stock plummeted to its lowest levels since its IPO on Thursday.
- Shares dropped as much as 4% as a lockup period was set to expire.
Trump Media & Technology Group shares dropped to their lowest level since the company went public earlier this year as a lockup period preventing insider selling was set to expire.
The Truth Social parent company's shares slid as much as 4% on Thursday, dropping as low as $14.77 before paring some losses.
The company went public in March, with shares spiking to all-time highs above $70 shortly after, before steadily declining in the following months.
The most recent decline has been fueled by investor concern over the lockup period which prevents insiders from selling, and which is set to expire as soon as Thursday afternoon, CNBC reported.
Once the lockup period is over, the Republican presidential candidate has the all-clear to start selling his stock. If he chooses to do so, it could be a major headwind for investors, given that Trump owns a nearly 60% stake in the company worth $1.7 billion based on Thursday's price.
Trump said last week he had no intention of selling the stock, which briefly calmed investors.
"No, I'm not selling. No, I love it," the presidential candidate said in a press conference last Friday, sparking a 25% rally in DJT shares.