'Rats jumping off a sinking ship': Insiders dumping Truth Social stock as price tanks
According to a new report, if Donald Trump wants to tap into a cash windfall that awaits him from his stake in Trump Media & Technology Group, the parent company of Truth Social, his time is coming soon but there are also indications some of the company's insiders are seeing the writing on the wall and it is not good.
Stock in the long-troubled social media platform has plummeted 40 percent in the past month, which puts the former president under the gun due to restraints placed upon him that keep him from doing a sell-off or borrowing against his shares until September 25.
That restraint has not held back some of the tech company's executives who have already started cashing in their stock as the value plummets.
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According to a report from CNN, "Some Trump insiders are already selling, perhaps contributing to the recent selloff in the share price. For instance, Phillip Juhan, Trump Media’s chief financial officer and treasurer, recently disclosed selling $1.9 million worth of stock. Trump Media’s general counsel Scott Glabe, chief operating officer Andrew Northwall and chief technology officer Vladimir Novachki made smaller sales last week too. Even Devin Nunes, the former Republican congressman who now serves as Trump Media’s CEO and president, dumped $632,000 worth of stock last week."
According to Charles Whitehead, professor of business law at Cornell Law School, there is the danger of a massive sell-off, explaining, "You don’t see sizable shareholders like President Trump selling a lot of stock because it drives the price down. From the market’s perspective, it may look like rats jumping off a sinking ship.”
Jay Ritter, of the University of Florida’s Warrington College of Business, added there is additional political peril if the former president does a massive stock dump.
“If Trump were to sell a large number of shares and the stock price tanks, to some degree he would be burning his own supporters who bought the stock,” Ritter suggested. “Politically, that may not play out real well for him.”
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