Trump Media Rebounds After Extended Decline Amid Post-Lockup Trading Surge

Trump Media shares saw a notable recovery after a series of sharp losses, following the expiration of lockup agreements that allowed insiders, including majority owner Donald Trump, to sell their holdings.

Despite speculation, Trump has reiterated that he is not selling his shares, although Trump Media cautioned that some early investors might be looking to exit. The company's stock, trading under the ticker DJT on Nasdaq, ended Tuesday's session up by over 5%, closing at $12.79 per share.

During the trading day, over 21 million shares were exchanged, significantly surpassing the 30-day average of 8.8 million shares, according to FactSet data. This rise follows a stretch of six consecutive days of losses, which dragged Trump Media's stock price down by more than 32%.

Trump Media has been struggling since going public in late March through a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). The stock, which reached an intraday peak of $79.38 during its initial public offering (IPO), has since lost nearly 84% of its value.

On Monday, the stock hit its lowest point since October 2021, when the merger news first surfaced. Trump remains the largest shareholder with roughly 57% of the company’s outstanding shares. Despite the sharp drop, his stake is still valued at approximately $1.5 billion, though it has seen a significant decline over the past few months.

While Trump has pledged to hold onto his shares, the company warned that other early investors were likely preparing to sell now that the lockup period has ended. Although there was no confirmation by Tuesday morning if any investors had already sold, such actions typically require disclosure with the U.S. Securities and Exchange Commission (SEC).