Trump Media stock rises after co-founder dumps DJT shares

Shares of Trump media were trading more than 7% higher as of 1 p.m. ET on Friday after major shareholder United Atlantic Ventures, LLC sold nearly 11 million of its shares in the company on Thursday.

UAV, an investment partnership of former “Apprentice” contestants Andrew Litinsky and Wes Moss, divested virtually all of its stake in the company on Thursday. All that remained were 100 shares of Trump Media, which also owns former President Donald Trump's social media app Truth Social.

UAV's decision to sell its 5.4% stake comes after the Sept. 19 expiration of a lock-up agreement that barred majority shareholder Trump and other early investors from selling their shares. UAV is the only known company insider to have sold shares since then.

It was not clear from Thursday's SEC filing how much UAV earned from selling its shares. But based on the price range at which DJT has sold since the lock-up period expired, UAV may have received between $128 million and $170 million for its shares.

After trading in the red for six straight trading days since lockdown restrictions expired and hitting a new 52-week low on Monday, shares of Trump Media snapped a losing streak on Tuesday, ending the trading day up more than 5% $12.79 per share.

Trump, who owns nearly 57% of the outstanding shares, said he has “absolutely no intention of selling.”

In previous regulatory filings, Trump Media has said that the success of its sole product, Truth Social, depends on Trump's popularity and continued use of the platform.

Despite the recent surge, as of 1 p.m. ET on Friday, the stock was down about 77% overall since Trump Media made its Nasdaq market debut in late March following a merger with a special purpose acquisition company.