Nancy Pelosi is, without question, the most renowned (or notorious) congressional stock trader.
The former Speaker of the House and current Representative of California’s 11th congressional district has made millions through savvy investments.
That’s not to say that all of her bets pan out. However, even when you take into account several duds, such as her investment in Tesla, it’s still prudent to keep track of the former Speaker’s investments in this area.
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Most of Nancy Pelosi’s investments take a while to pay off — but her most recent stock bet, a $50,001 to $100,000 investment in Tempus AI call options, made on January 14, that Finbold’s congressional trading radar picked up on, paid off almost as soon as her trade became public.
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At the time of her purchase, Tempus AI stock (NASDAQ: TEM) was trading at a price of $31.83. On the back of several positive developments, not the least of which was Pelosi’s seal of approval, TEM stock surged to an all-time high (ATH) of $89.44 on February 14.
To put the rally into perspective, that’s a 180.99% gain in 1 month.
It would seem that the surge could be coming to an end — over the course of the last week, the price of TEM shares has dropped by 14.22%. More importantly, prices have dropped by 10.49% when looking at the 24-hour chart.
By press time on February 21, Tempus AI stock was trading at $75.00 in the pre-market trading session down -$1.72. Let’s take a closer look at why.
Downgrades and insider selling sully Nancy Pelosi stock’s surge
First, we have to consider Wall Street’s perspective. On February 12, William Blair analyst Andrew Brackmann downgraded TEM from an ‘Outperform’ to a ‘Market Perform’ rating. Neither Brackmann’s earlier outlook nor this one specified a price target — in a note shared with investors, the analyst highlighted William Blair’s view that the fair value of TEM stock is roughly $65 per the firm’s estimates.
The most significant bearish factor at play is insider sales. Ever since the rally began, Tempus AI insiders have been relentless in selling the stock.
Finbold’s insider trading radar picked up a $62 million sale from company chief executive officer (CEO) and chairman Eric Lefkofsky on January 24. Then, from January 24 to February 29, a whopping 11 insider sales took place.
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The finale, however, came on February 20 — when 6 company insiders collectively dumped roughly $26,053,045 worth of Tempus AI stock. They are, in no particular order:
- Chief Executive Officer (CEO) Eric Lefkofsky, who sold $11,974,005 worth of TEM stock
- Chief Operating Officer (COO) Ryan Fukushima, who sold $234,814 worth of Tempus AI shares
- Chief Accounting Officer (CAO) Ryan M. Bartolucci, whose sale was valued at $201,533
- Executive Vice President (EVP) and Chief Admin & Legal Officer, Erik Phelps, whose trade was worth roughly $5,146,009
- Executive Vice President (EVP) and General Counsel Andrew Polovin, who joined in with a $5,754,290 sale
- Chief Financial Officer (CFO) James William Rogers, who rounded out the dumping with a transaction worth $2,742,394
Lastly, readers should note that all the trades, except for Lefkofsky’s and Fukushima’s, were made according to prearranged 10b5-1 plans.
Featured image via Shutterstock
