We wouldn't blame Trump Media & Technology Group Corp. (NASDAQ:DJT) shareholders if they were a little worried about the fact that Phillip Juhan, the CFO & Treasurer recently netted about US$12m selling shares at an average price of US$31.04. That diminished their holding by a very significant 95%, which arguably implies a strong desire to reallocate capital.
Trump Media & Technology Group Insider Transactions Over The Last Year
Notably, that recent sale by Phillip Juhan is the biggest insider sale of Trump Media & Technology Group shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$26.99). So it is hard to draw any strong conclusion from it.
In the last year Trump Media & Technology Group insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership Of Trump Media & Technology Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Trump Media & Technology Group insiders own 57% of the company, currently worth about US$3.6b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Trump Media & Technology Group Insiders?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Trump Media & Technology Group (of which 3 make us uncomfortable!) you should know about.
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
