Nancy Pelosi is the most renowned (and notorious) congressional stock trader. The former speaker tends to invest in big tech companies — often with very auspicious timing. While not all of her trades pan out, the Representative of California’s 11th congressional district still hasn’t lost her touch. In 2024, Pelosi’s portfolio secured a roughly 146.2% return.
Finbold’s congressional trading radar picked up an interesting investment made by Pelosi on January 14. A period transaction report revealed that she had invested between $50,001 and $100,000 in Tempus AI (NASDAQ: TEM). To be more precise, the congresswoman purchased 50 call options with a strike price of $20 and an expiration date of January 16, 2026.
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This little-known tech company leverages artificial intelligence (AI) for precision medicine. After Pelosi’s purchase became public, the price of TEM stock soared by 20% in the premarket trading session, from $35.15 to $42.56.
Now, Finbold’s insider trading radar has retrieved an SEC filing made public on January 24. Eric Lefkofsky, the company’s chief executive officer (CEO) and chairman, made a significant sale of Tempus AI stock from January 22 to January 24.
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Lefkofsky’s sale of Pelosi’s AI stock was not preplanned
All in all, the CEO executed 15 sell transactions, at prices ranging from $47.78 to $54.75. His sale included a grand total of 1,207,065 Tempus AI shares worth approximately $62 million. Interestingly enough, Lefkofsky’s sale was not made according to a 10b5-1 plan — in other words, it wasn’t prearranged or prescheduled.
However, this comes as little surprise — since Pelosi’s AI stock purchase became public, the price of TEM shares has increased by 61.48% — although by press time on January 27, those gains receded to 51.42%, since TEM stock was changing hands at $48.20.
Investors should be cautious — as the opportunity might have already passed. Despite robust results in FY2024, market sentiment has been mixed — and another key stakeholder, Bradley Keywell, recently sold roughly $33.1 million worth of TEM stock.
Sales like these, which are not preplanned, are exposed to increased scrutiny and oversight — but are not illegal. In any case, whether or not Pelosi’s faith in the company is justified, locking in profits after such a sudden surge is a sensible move — and cannot serve as a reliable bearish signal.
Featured image via Shutterstock
