Several insiders at Trump Media & Technology Group (TMTG), including Chief Financial Officer Luis A. Baretto and two other board members, have recently sold millions of dollars’ worth of Digital World Acquisition Corp’s (DWAC) stock, per securities filings.
Baretto, who is also a board member, sold 111,111 shares valued at $4.4 million. Meanwhile, board members Orlando B. Bravo and James F. Graf sold 222,222 shares (around $8.8 million) and 111,111 shares (around $4.4 million), respectively.
These transactions were conducted after TMTG recently went public and saw their stock (DWAC) surge in value. TMTG had gone public via a merger with special purpose acquisition corporation, Digital World Acquisition Corp. Notably, the stock surged due in part to its association with former president Donald Trump and speculation regarding the launch of a new social media platform spearheaded by Trump.
The selling by insiders has raised some eyebrows among investors and average observers. Speculations have been made about whether they are losing faith in the long-term value of the venture, or are just seizing an opportunity to cash in on the dramatic and perhaps unsustainably sharp rise in stock value. For now, however, the insiders’ specific motivations behind their sales remain unclear.
This stock sale is significant because insider trading activities generally provide key insights into how insiders view their company’s future prospects.
