Shares of Trump Media & Technology Group (NYSE:DJT) stock are taking a tumble after it was announced that former President Donald Trump has been found guilty of all 34 felony counts regarding hush-money payments made to adult film star Stormy Daniels. Trump is now the first former president to be convicted of criminal charges, while his sentencing has been scheduled for July 11.
Trump is expected to appeal the verdict, characterizing the decision as a “disgrace” and stating that “the real verdict is going to be Nov. 5 by the people.” The appeal would delay any potential consequences that he faces.
The court’s decision puts a major wrench in Trump Media’s path to becoming a legitimate social media entity. It could also threaten Trump’s chances for a second term, as an NPR poll showed that 17% of voters stated the verdict would affect whether they vote for Trump or not.
On top of that, DJT stock’s premium valuation in relation to its sales could mean that more pain is on the way. During the first quarter, the company generated just $770,500 in revenue with a net loss of $327.59 million.
5 Investors Betting Big on DJT Stock in Q1
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q1, 209 13F filers disclosed a stake in DJT stock, an increase of 86 filers compared to the previous quarter. While this is a significant increase, it’s worth noting that Trump Media’s special purpose acquisition company (SPAC) merger was completed in the first quarter. In total, these 13F filers own 2.20 million shares, up by 38.11% from 1.59 million shares.
Hedge funds, a subset of institutional investors, also increased their stakes. A total of 26 hedge funds own 1.03 million shares compared to Q4 ownership of 473,609 shares.
With that in mind, let’s take a look at Trump Media’s top shareholders:
- Donald Trump: 114.75 million shares. Trump’s stake is accurate as of April 26.
- ARC Global Investments: 13.32 million shares. ARC acquired its entire stake during Q1.
- ATW SPAC Management: 202,200 shares. ATW added 52,200 shares during Q1.
- D.E. Shaw & Company: 202,200 shares. D.E Shaw acquired its entire stake during Q1.
- Citadel Advisors: 162,333 shares. Citadel added 160,415 shares during Q1.
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.
