Shares of Trump Media & Technology Group Corp. (NASDAQ: DJT) experienced a significant downturn on November 17, 2023, reaching a 52-week low as insider selling weighed heavily on investor sentiment. During mid-day trading, the stock price fell to $10.47 before closing at $10.85, down from the previous close of $11.07. Trading volume was notably high, with over 9.9 million shares exchanged.
The drop in stock price followed a transaction involving the company’s director, Eric Swider, who sold 5,200 shares at an average price of $10.59, amounting to a total of $55,068. After this sale, Swider retained 18,841 shares, valued at approximately $199,526, reflecting a 21.63% reduction in his stake. This transaction was disclosed in a filing with the Securities and Exchange Commission.
Analysts’ Perspectives on Stock Performance
Despite the recent declines, analysts have varying views on the stock’s future. Weiss Ratings reaffirmed a “sell (e+)” rating on the shares in a research note released on October 8. Currently, the stock holds an average rating of “Sell” from analysts, indicating a cautious outlook for potential investors.
The overall market performance for Trump Media & Technology Group reflects challenges as well. The company now has a market capitalization of $2.88 billion and a P/E ratio of -17.44. Its beta stands at 4.56, suggesting high volatility compared to the broader market. Financial metrics reveal a debt-to-equity ratio of 0.42, while both the current and quick ratios are impressively high at 42.78, indicating substantial liquidity.
Activity from Institutional Investors
Recent trading activity indicates a mixed response from institutional investors. For example, Spire Wealth Management significantly increased its holdings in Trump Media & Technology Group by 628.1% in the second quarter, now owning 29,050 shares valued at $524,000. Similarly, the Swiss National Bank raised its position by 6.7%, acquiring an additional 10,600 shares, bringing their total to 168,100 shares worth approximately $3.3 million.
Other notable institutional movements include D.A. Davidson & Co.’s new position valued at about $405,000 and Bank of New York Mellon Corp, which grew its stake by 19.2% to own 231,726 shares worth around $4.5 million. The Vanguard Group Inc. also increased its holdings by 2.6%, now owning over 9.2 million shares valued at approximately $180.6 million. Overall, institutional investors currently hold 4.29% of the stock.
Founded on March 28, 2024, and headquartered in Sarasota, FL, Trump Media & Technology Group operates in the social media and technology sectors, with brands including TRUTH Social, TMTG+, and TMTG News.
As the company navigates these challenges, market watchers will be keenly observing how insider trends and institutional strategies evolve in the coming weeks.
