5 Investors Betting Big on Digital World (DWAC) Stock

  • Digital World’s (NASDAQ:DWAC) Truth Social is now available to download on the Google Play Store.
  • The SPAC’s shareholder meeting has been delayed for a fourth time to Nov. 3.
  • Pentwater Capital Management is the largest shareholder of DWAC stock.
DWAC stock - 5 Investors Betting Big on Digital World (DWAC) Stock

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Despite a higher-than-expected Consumer Price Index (CPI) report, shares of Digital World (NASDAQ:DWAC) are up by more than 20% after it was announced that Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Play Store had restored access to Truth Social on its platform. The app had previously been removed for violating content-moderation policies. Google stated that Truth Social has now agreed to comply with its policies.

Earlier this week, it was announced that the special purpose acquisition company (SPAC) pushed back its meeting for shareholders to vote on the Trump Media and Technology Group (TMTG) merger deadline. This is the fourth time that the meeting has been delayed. The meeting will now be held on Nov. 3, and the SPAC must receive 65% of shareholder approval to push back the deadline by about a year beyond the current deadline of Dec. 8. If shareholders fail to approve the action, $1 billion could be at risk of liquidation.

Digital World is also facing pressure from whistleblower William Wilkerson, a co-founder of the company. In August, he provided the U.S. Securities and Exchange Commission (SEC) with internal documents and alleged that Digital World committed securities violations. He added: “One way or another, this company is going to go bankrupt. I don’t think the company is going to be approved by the SEC.”

Still, DWAC stock has a fair share of reputable investors. Let’s get into the details.

5 Investors Betting Big on DWAC Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q2, 165 13F filers reported owning DWAC, a decline of three filers from the previous quarter. On top of that, the institutional put/call ratio sits at 1.33, up from 1.26 during Q1. This means that institutions own more put options against the SPAC than call options. With that in mind, let’s take a look at the top shareholders:

  1. Pentwater Capital Management: 608,891 shares. Pentwater purchased 208,276 shares during Q2.
  2. Nomura Holdings: 270,654 shares. Nomura sold 37,131 shares during Q2.
  3. Susquehanna International Group: 246,062 shares. Susquehanna purchased 519 shares during Q2.
  4. Stifel Financial Group: 148,810 shares. Stifel purchased 1,450 shares during Q2.
  5. Citadel Advisors: 125,578 shares. Citadel purchased 119,570 shares during Q2.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/10/5-investors-betting-big-on-digital-world-dwac-stock/.

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