Nancy Pelosi is the most renowned congressional trader. Why? Well, a modest $1,000 investment split evenly between her largest holdings at the beginning of 2024 would have netted a staggering 146.2% return by the end of the year.
The congresswoman’s investments, beyond being a prime target for copy-trading, also have the ability to move markets. Back in mid-January, the representative updated her portfolio. It was mostly business as usual — buying big tech, selling big tech. But one thing caught stood out — an entirely new position consisting of Tempus AI (NASDAQ: TEM) call options.
Soon after, the price of TEM shares surged, reaching an all-time high (ATH) of $89.44 on February 14. However, with that much future growth priced in, Tempus AI stock could not sustain its newfound valuation amid a tidal wave of market volatility set in motion by the tariff war.
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By press time, Pelosi’s AI stock pick was changing hands at a price of $48.03, some 46.30% off of its ATH price. At present, TEM shares are still up 42.27% on a year-to-date (YTD) basis.
Despite a 4.19% surge on the weekly chart, Tempus AI could see further drops ahead — as several company insiders decided to cut their stakes in the company on March 17 and March 18.
Board of directors and insiders dump $4 million worth of Nancy Pelosi’s latest stock holding
Finbold’s insider trading radar picked up a total of seven insider sales, having retrieved the relevant information from SEC Form 4 filings published on March 19.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
The insiders who sold Tempus AI were:
- Jennifer Doudna, a board member, who sold 9,308 shares for a total of $454,210
- Wayne Frederick, a board member, who sold 9,000 shares for a total of $439,659
- Scott Gottlieb, a board member, who sold 27,838 shares for a total of $1,359,989
- Nadja West, a board member, who sold 7,634 shares for a total of $372,692
- David Epstein, a board member, who sold 990 shares for a total of $46,362
- Andrew Polovin, executive vice president and general counsel, who sold 13,135 shares for a total of $607,970
- James William Rogers, the company’s chief financial officer, who sold 23,030 shares for a total of $1,058,699
Put together, those transactions are worth roughly $4,339,581.
This isn’t the first time that company insiders have engaged in a mass selloff in a short period of time. Back on February 20, six company insiders dumped $26 million worth of the Nancy Pelosi AI stock.
What led insiders to dump Tempus AI stock?
Let’s tackle the question head-on. Both this time around and in the case of the February sale, a majority of the trades were prearranged. Therefore, they were not caused by any recent development.
However, the extent and coordination of the liquidations still present a valid bearish signal in and of itself. As reasonable as it is to lock in the gains seen after Pelosi’s purchase, the move is a clear indication that key personnel consider current prices a reasonable point to sell at — indicating either new drops to come or a lack of belief that a move to the upside will occur.
With that being said, Nancy Pelosi’s call options, which are set to expire on January 16, 2026, have a strike price of $50. In addition, Cathie Wood and Ark Invest have proven quite willing to buy the dip. Tempus AI’s long-term growth prospects may very well be intact — but nothing that we’ve seen recently indicates that positive price action will ensue any time soon.
Featured image via Shutterstock
