Yahoo Finance Trump Media & Technology Group Corp.'s (NASDAQ:DJT) market cap increased by US$1.6b, insiders receive a 58% cut
Key Insights
Insiders appear to have a vested interest in Trump Media & Technology Group's growth, as seen by their sizeable ownership
The largest shareholder of the company is Donald Trump with a 79% stake
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
Every investor in Trump Media & Technology Group Corp. (NASDAQ:DJT) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, insiders were the biggest beneficiaries of last week’s 24% gain.
Let's delve deeper into each type of owner of Trump Media & Technology Group, beginning with the chart below.
View our latest analysis for Trump Media & Technology Group
What Does The Lack Of Institutional Ownership Tell Us About Trump Media & Technology Group?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Trump Media & Technology Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Hedge funds don't have many shares in Trump Media & Technology Group. Donald Trump is currently the company's largest shareholder with 79% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second largest shareholder is Eric Swider holding 0.2%.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Trump Media & Technology Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems that insiders own more than half the Trump Media & Technology Group Corp. stock. This gives them a lot of power. Given it has a market cap of US$8.4b, that means insiders have a whopping US$4.9b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.
General Public Ownership
With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Trump Media & Technology Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Trump Media & Technology Group better, we need to consider many other factors. For instance, we've identified 3 warning signs for Trump Media & Technology Group (2 make us uncomfortable) that you should be aware of.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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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.
