Trump Media & Technology Group (NASDAQ:DJT) Sees Large Volume Increase - Still a Buy?

Key Points

• DJT trading surged: About 9.48 million shares changed hands, 116% above average volume, as the stock fell from its prior close of $4.49 to $4.065.
• Coverage linked the steep selloff to political uncertainty after Democrats’ midterm gains; unusually high put-option buying also signaled increased demand for downside protection or bearish bets.
• Investors face added uncertainty around a reported transfer of 4,259 bitcoin and the pending TAE Technologies merger. Analysts’ consensus rating is Sell, with one analyst rating the stock Sell.

Trump Media & Technology Group Corp. (NASDAQ:DJT - Get Free Report) saw strong trading volume on Thursday. Approximately 9,479,840 shares changed hands during trading, an increase of 116% from the average daily volume of 4,379,708 shares. The stock last traded at $4.0650 and had previously closed at $4.49.

Trump Media & Technology Group News Roundup

Here are the key news stories impacting Trump Media & Technology Group this week:

• Neutral Sentiment: Trump Media and TAE Technologies filed an amended registration statement for their proposed merger, keeping the planned fusion-energy deal in view but offering no clear near-term catalyst in the cited coverage. Trump Media and TAE Technologies File Amended Form S-4 Registration Statement for Proposed Merger
• Negative Sentiment: Democrats’ midterm gains and control of Congress appear to have triggered a political selloff. Investors may be pricing in reduced value from Trump’s political influence, as well as possible congressional scrutiny or constraints; coverage also noted the sharp decline in Trump’s reported wealth tied to DJT shares. Trump Media stock plunges after midterms
• Negative Sentiment: Put-option buying was unusually elevated Thursday: investors bought 30,315 puts, about 56% above the average daily volume. That points to increased demand for downside protection or bearish bets, though options activity alone does not establish the reason for the decline.
• Negative Sentiment: A report said Trump Media transferred 4,259 bitcoin, an amount close to pledged loan collateral. The headline raises questions about the relationship between the company’s bitcoin holdings and its borrowing, potentially adding uncertainty for investors. Trump Media Bitcoin Transfer of 4,259 BTC Nearly Matches Pledged Loan Collateral
• Negative Sentiment: One account of the latest plunge said there was no company announcement to explain it, leaving investors to weigh the political outlook, bitcoin exposure and pending merger amid uncertainty about what supports DJT’s valuation. Trump Media Just Lost a Quarter of Its Value in a Day

Wall Street Analyst Weigh In

DJT has been the topic of a number of analyst reports. Weiss Ratings lowered shares of Trump Media & Technology Group from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, September 2nd. Wall Street Zen cut shares of Trump Media & Technology Group from a "sell" rating to a "strong sell" rating in a research note on Sunday. One research analyst has rated the stock with a Sell rating. According to data from MarketBeat.com, the stock has an average rating of "Sell".

Trump Media & Technology Group Stock Performance

The firm has a market cap of $1.12 billion, a PE ratio of -0.82 and a beta of 1.35. The stock has a fifty day moving average price of $8.05 and a 200-day moving average price of $9.23.

Institutional Investors Weigh In On Trump Media & Technology Group

Several large investors have recently made changes to their positions in DJT. Bank of New York Mellon Corp grew its holdings in Trump Media & Technology Group by 0.3% during the 1st quarter. Bank of New York Mellon Corp now owns 417,269 shares of the company's stock valued at $3,872,000 after purchasing an additional 1,398 shares in the last quarter. NewEdge Advisors LLC increased its stake in Trump Media & Technology Group by 11.9% during the 1st quarter. NewEdge Advisors LLC now owns 13,966 shares of the company's stock worth $130,000 after buying an additional 1,488 shares during the period. Royal Bank of Canada lifted its holdings in Trump Media & Technology Group by 8.5% in the 1st quarter. Royal Bank of Canada now owns 21,451 shares of the company's stock worth $200,000 after buying an additional 1,676 shares in the last quarter. Farther Finance Advisors LLC lifted its holdings in Trump Media & Technology Group by 55.6% in the 3rd quarter. Farther Finance Advisors LLC now owns 4,734 shares of the company's stock worth $43,000 after buying an additional 1,691 shares in the last quarter. Finally, Axxcess Wealth Management LLC boosted its position in Trump Media & Technology Group by 2.8% in the 3rd quarter. Axxcess Wealth Management LLC now owns 72,161 shares of the company's stock valued at $654,000 after buying an additional 1,960 shares during the last quarter. Institutional investors and hedge funds own 4.29% of the company's stock.

Trump Media & Technology Group Company Profile

Trump Media & Technology Group Corp. is a media and technology company focused on developing social media, streaming and other digital services. Its principal platform is Truth Social, a social networking service that enables users to create posts, follow accounts and participate in online discussions.

The company also operates Truth+, a streaming platform offering video content, including news and entertainment programming. TMTG has additionally announced plans to develop Truth.Fi, a financial services and technology initiative intended to include products such as separately managed accounts, exchange-traded funds and other investment-related offerings.

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