Trump Media stock slid on Wednesday after the company disclosed in a securities filing the possibility of significant stock sales, including by insider shareholders such as the president’s trust. The parent company of Truth Social said in a filing dated April 1 that the company could soon sell roughly 8.4 million shares of common stock related to existing warrants issued during the IPO.
The company said insiders and major stakeholders could also sell up to about 134 million shares “from time to time.” That includes the more than 114 million shares held by the Donald J. Trump Revocable Trust.The stock was down about 5% in midday trading.
President Donald Trump has previously said he does not plan to sell his stake in the company. His son Donald Trump Jr. is in charge of the revocable trust.
“The sale of the Resale Securities being offered pursuant to this prospectus, or the perception that these sales could occur, could result in a significant decline in the public trading price of our Common Stock,” the prospectus warned.
The company said the total shares available for resale amounted to 129.2% of the company’s public float of shares, which is a measure of the amount of stock currently available for trade. In a statement, the company said the filing does not indicate that insider sales are planned.
