US Markets
Wednesday, November 13th, 2024 7:02 pm EDT
Key Points
- Significant Stock Sales by Trump Media Insiders: The CFO, Phillip Juhan, and two other corporate insiders (Eric Swider and Scott Glabe) of Trump Media sold more than $16 million worth of company stock in the week following the 2024 presidential election. Juhan, who had a pre-established trading plan, was the largest seller, offloading 384,000 shares for a total of $11.9 million.
- Trump Media’s Financial Struggles: Despite having a market capitalization of $6.3 billion, Trump Media has reported weak financial performance, including just $1 million in revenue for Q3 2024 and a loss of $19.2 million for the quarter. The Truth Social app, which the company operates, has a very small user base with only 200,000 daily active users, far behind other social media platforms.
- Restricted Stock Units (RSUs) and Future Vesting: The insiders who sold stock, including Juhan, Glabe, and CEO Devin Nunes, received significant RSUs on Election Day, which are set to vest over the next several years. These RSUs, while contributing to the company’s high valuation, are not immediately sellable and will be released gradually over time, with one-quarter vesting on December 25, 2024, and the remainder vesting quarterly until 2027.
In the week following the 2024 presidential election, the chief financial officer (CFO) of Trump Media, Phillip Juhan, along with two other corporate insiders, sold over $16 million worth of the company’s stock, according to recent disclosures. Juhan, who had previously adopted a trading plan in August to sell 400,000 shares of Trump Media by December 2025, sold the majority of the shares. On Friday, Juhan sold 320,000 shares at $30.65 per share, amounting to $9.8 million, and then sold an additional 64,000 shares at $32.97 per share on Monday, which raised another $2.1 million. By the end of the sales, Juhan still retained 265,798 shares of Trump Media, though nearly all of these are restricted stock units (RSUs) that cannot be sold immediately. These RSUs, awarded to Juhan on Election Day, will vest over several years, with one-quarter becoming available for sale in December 2024 and the remainder vesting quarterly until March 2027.
In addition to Juhan, Eric Swider, a director of Trump Media, sold 136,183 shares on Friday for $3.84 million, at a price of $28.23 per share. Swider’s sale disposed of all his shares in Trump Media, though his company, Renatus Advisors, still holds 18,043 shares in the company. Scott Glabe, Trump Media’s general counsel, also sold shares on the same day. He sold 15,917 shares for $512,368, at $32.19 per share, and still owns 336,576 RSUs. Like Juhan, Glabe’s RSUs will vest over time according to the same schedule.
Trump Media, which operates the Truth Social app, has a market capitalization of $6.3 billion, despite reporting a meager $1 million in revenue for the third quarter of 2024. The company also posted a loss of $19.2 million for the quarter. Truth Social’s user base is relatively small compared to other social media platforms, with only 200,000 daily active users as of November 6, far behind competitors such as X, Threads, and Bluesky. The stock’s dramatic fluctuations since it went public in March, combined with the company’s limited financial performance, have led to skepticism about its long-term viability.
On the same day that Juhan and Glabe received their RSUs, Trump Media CEO Devin Nunes received 1.3 million RSUs, which, as of the latest market data, are valued at nearly $38 million. These RSUs are subject to the same vesting schedule as those awarded to Juhan and Glabe. The timing of these stock sales raises questions, particularly considering the company’s financial struggles and relatively small user base, despite its high market capitalization. Trump Media has yet to comment on the sales.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/11/13/trump-media-cfo-insiders-sell-djt-stock.html
