The rise comes after the stock price for former President Donald Trump’s media company—officially known as the Trump Media and Technology Group (TMTG)—hit a record low last Tuesday, Sept. 24.
Since then the stock has rebounded, rising 33% from its low of $12.15 to the current price of $15.48. The strong performance was headed by a rally when the market opened on Monday, Sept. 30. TMTG stock, which trades under the ticker DJT, rose 5.5% in the first hour of trading that day, according to Bloomberg data.
The stock had another big trading day yesterday, when a burst of shares hit the market. As soon as the stock market opened at 9:30 a.m. on Oct. 1.68 million shares traded, according to Bloomberg data. That pronounced trading activity was good for a 3.6% increase when the market opened. Since Tuesday morning the stock has fallen 6%, though it remains above its late-September lows.
TMTG stock has fallen precipitously since going public in March via SPAC, dropping 72% since its debut.
The rising stock price matters greatly to the personal fortune of former President Trump, who owns roughly 58% of the company. TMTG also boasts a larger than usual base of retail investors—620,000 as of June by the company’s count—that bought the stock as a show of political support for Trump. As the stock falls, so does the value of their investment, independent of their individual support for their preferred candidate.
A huge amount of shares hit the market in September, when two of TMTG’s cofounders sold their equity stake in the company. The two co-founders, Adam Litinsky and Wesley Moss, had a 5.5% stake in the company, consisting of roughly 11 million shares, which they sold for about $160 million, according to SEC filings.
Litinsky and Moss first approached Trump to start the company in 2021 shortly after he was banned from most major social media platforms in the aftermath of Jan. 6. The three agreed to start a company, with Trump as its majority shareholder and primary pitchman. However, the relationship later soured and ended up in court. Litinsky and Moss, via their holding company United Atlantic Ventures, contended that TMTG unfairly tried to withhold their shares from them. On the other hand, TMTG alleged the two had botched the process to take the company public, delaying the process by almost two years. A judge eventually sided with Litinsky and Moss, granting them their shares—which they promptly sold.
Trump himself has said that he does not intend to sell his roughly 114 million shares. There had been speculation that Trump would, once a standard six month lockup period he was subject to ended in September. On the back of the announcement, the stock shot up temporarily.
On Tuesday, TMTG stock was flat.
