Trump Media & Tech, Ackman IPO, NatWest, Vans boosted – Markets Defused

Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.

 

• Trump Media & Technology sees volatile trading
• Ackman plans IPO for Pershing Square
• NatWest seals quick-fire share sale ahead of election
• Vans boosted with hiring of ex-Lululemon product head

 

Trump Media & Technology sees volatile trading after guilty verdict

Trump Media & Technology Group Corp (NASDAQ:DJT) stock traded down around 5% amidst the fall-out of the guilty verdict in Donald Trump's ‘hush-money’ case.

After Trump was last night found guilty on all 34 counts of falsifying business records the former President’s social media company, which operates the ‘Truth Social’ app, saw its shares initially plunge as much as 14%.

It has been a volatile stock since its float in March, joining the market as a result of a merger with shell company Digital World Acquisition Corp.

At first, DJT surged over 30% in its first few days of trading but later declined by as much as 50% in the following weeks.

Sceptics have claimed that the share has been ‘trading like a memestock’, with the stock market valuation often disconnected from the company’s fundamental performance.

Donald Trump owns 70% of the company's shares, although he is restricted by lock-up provisions from selling or borrowing against his shares for six months from the March merger.

In New York, DJT stock lost $2.82 or 5.21% changing hands at around $49.14.

Ackman planning IPO for Pershing Square, reports say

Bill Ackman, the activist investor and short-seller, is reportedly planning to float his Pershing Square Capital Management firm on the public market next year.

Ackman is, as a precursor, selling a stake in Pershing Square through a deal with investors that values the money manager at $10.5 billion with the deal due to close in the next week, according to a report by the Wall Street Journal.

Pershing Square had $16.3 billion of assets under management at the end of April.

The hedge fund was started by Ackman in 2004 and at the end of April had some $16.3 billion of assets under management.

In 2023, Pershing Square achieved net gains worth $3.5 billion, bringing its overall gains to $18.8 billion since its inception.

Stock market experts say the IPO would see Ackman cash on a recent uptick in his personal public profile, having featured in recent years in documentaries on streaming platforms as well as being a guest on prominent podcasts.

If successful, it would be the first major public listing of a hedge fund in many years, after the 2008 financial crisis.

Besides his media appearances, Ackman has also captured global prominence, for his political positions and social media activity.

NatWest seals quick-fire share sale ahead of election

NatWest Group PLC (LSE:NWG) got away a quick-fire $1.24 billion share buy-back, before the UK general election stalls deals.

The company bought the shares from the UK government, which reduced its shareholding to 22.5% from 26%.

Its shareholding followed the Government’s 2008 bail-out of the banking sector, with the taxpayer at one stage owning 58% of the banking group.

This means that shareholder returns, comprising buybacks and dividends,  will now total £2.74 billion for the year.

Importantly, with the general election coming in early the Government’s divestment of its remaining stock, representing 22.5% of Natwest, may potentially stall.

“Generally, we view the progressive elimination of the UK Government's holding as positive for the rating of the shares,” stockbroker Peel Hunt said in a statement.

Peel Hunt rates NatWest as a 'buy', with a 370p price target – compared to today’s closing price of 315p each.

Vans owner boosted as it hires ex-Lululemon product head Sun Choe

Vans and North Face owner VF Corp (NYSE:VFC, ETR:VFP) traded higher on Friday, as it announced the appointment of Sun Choe – whose departure from Lululemon last week saw the stock slump.

Choe will be ‘global brand president’ of the Vans footwear brand.

In a statement, Choe said Vans stands out as an “incredible brand with a storied history and devoted customer base” and she plans to work on building long-lasting, meaningful connections with consumers globally.

Choe’s departure from Lululemon a week ago led to a $3 billion drop in market value for the yoga apparel maker.

On Friday, meanwhile, VF Corp (NYSE:VFC, ETR:VFP) stock was up $1.11 or 9% changing hands at $13.44.

The high-profile appointment may potentially prove to be a turning point for the group which is down close to 28% in 2024 to date.