5 Investors Betting Big on Digital World Stocks (DWAC)

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Despite a higher than expected consumer price index (CPI) ratio, shares of digital world (NASDAQ:DWAC) increased by more than 20% after the announcement that alphabetical (NASDAQ:GOOGNASDAQ:GOOGL) Google Play Store has restored access to Social truth on its platform. The app was previously removed for violating content moderation policies. Google said Truth Social has now agreed to comply with its policies.

Earlier this week, it was announced that the Special Purpose Acquisition Company (SPAC) had postponed its meeting for shareholders to vote on the Trump Media and Technology Group (TMTG) merger deadline. This is the fourth time the meeting has been postponed. The meeting will now be held on Nov. 3 and SPAC must receive 65% shareholder approval to extend the deadline about a year beyond the current Dec. 8 deadline. If shareholders don’t approve the action, $1 billion could be at risk of liquidation.

Digital World is also facing pressure from whistleblower William Wilkerson, the company’s co-founder. In August, he provided the U.S. Securities and Exchange Commission (SEC) with internal documents and alleged that Digital World had committed securities violations. He added: “One way or another, this company is going to go bankrupt. I don’t think the company will be approved by the SEC.

Still, DWAC shares have a fair share of reputable investors. Let’s get into the details.

5 investors are betting big on DWAC stocks

Tracking institutional ownership is important because these large investors provide liquidity and support for stocks. During the second trimester, 165 13F filers reported owning DWACs, down three filers from the previous quarter. Moreover, the institutional put/call ratio stands at 1.33, against 1.26 in the first quarter. This means that the institutions hold more put options against the SPAC than call options. With that in mind, let’s take a look at the major shareholders:

  1. Pentwater Capital Management: 608,891 shares. Pentwater purchased 208,276 shares during the second quarter.
  2. Nomura Holdings: 270,654 shares. Nomura sold 37,131 shares during the second quarter.
  3. International Susquehanna Group: 246,062 shares. Susquehanna bought 519 shares during the second quarter.
  4. Stifel Financial Group: 148,810 shares. Stifel bought 1,450 shares during the second quarter.
  5. Citadel Advisors: 125,578 shares. Citadel purchased 119,570 shares during the second quarter.

At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Eddie Pan specializes in institutional investments and insider trading. He writes for InvestorPlace’s Today’s Market team, which focuses on the latest news on popular stocks.

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