Trump Media shares are up 19% in the past 5 days

The increase comes after the share price for former President Donald Trump’s media company – formally known as Trump Media and Technology Group (TMTG) – hit a record low last Tuesday, September 24.

Since then, the stock has rebounded, rising 33% from a low of $12.15 to the current price of $15.48. The strong performance was led by a rally when the market opened on Monday, September 30. Shares of TMTG, which trades under the symbol DJT, rose 5.5 percent in the first hour of trading that day, according to Bloomberg data.

The stock had another big trading day yesterday as a burst of shares hit the market. As soon as the stock market opened at 9:30 a.m. in October, 1.68 million shares traded, according to Bloomberg data. This pronounced trading activity was good for a 3.6% gain at the market open. As of Tuesday morning, the stock is down 6%, though it remains above the lows since late September.

TMTG shares have fallen sharply since going public in March via SPAC, down 72% since debut.

The increase in the share price matters a lot for the personal fortune of former President Trump, who owns about 58% of the company. TMTG also boasts a larger-than-usual base of retail investors — 620,000 in June by the company’s count — who bought the stock as a show of political support for Trump. As the stock declines, so does the value of their investment, independent of individual support for their preferred candidate.

A huge amount of stock hit the market in September when two of TMTG’s co-founders sold their stake in the company. The two co-founders, Adam Litinsky and Wesley Moss, owned a 5.5 percent stake in the company, consisting of about 11 million shares, which they sold for about $160 million, according to SEC filings.

Litinsky and Moss first approached Trump about starting the company in 2021, shortly after he was banned from most social media platforms after January 6. The three agreed to form a company, with Trump as the majority shareholder and chief pitchman. However, the relationship later soured and ended up in court. Litinsky and Moss, through their holding company United Atlantic Ventures, claimed that TMTG unfairly tried to withhold their shares. On the other hand, TMTG claimed that the two botched the process to take the company public, delaying the process by almost two years. Ultimately, a judge sided with Litinsky and Moss, awarding them the shares they promptly sold.

Trump himself has said he has no plans to sell his roughly 114 million shares. There had been speculation that Trump would have ended once a standard six-month lockdown period that was due to end in September. On the back of the announcement, the stock rose temporarily.

TMTG stock remained flat on Tuesday.