In recent years, U.S. politicians have been drawing increasing interest and criticism over their stock market activities. Indeed, many elected officials have been noted for making either exceptionally well-timed trades or investing in obscure companies operating within the sectors they oversee.
Senator Tina Smith has, apparently, done both in November 2023 when she disclosed two purchases of a fairly small medical company called Artivion (NYSE: AORT) totaling up to $200,000. These trades quickly proved controversial.
Not only did AORT stock jump shortly after the politician purchased the shares, but the company boasted a market cap of only some $500 million at the time. Furthermore, Smith herself sits on the Senate Committees on Health.
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At the time of the first trade, November 10, Artivion stock was worth $13.33. At the time of the second, November 16, the company’s shares stood at $14.09.
AORT shares jumped to nearly $18 already by November 24, and Artivion’s price today – after a considerable subsequent increase – stands at $25.65. This means that Senator Smith made up to $93,000 on the first and up to $82,000 on the second, achieving for a total return of 87.5%.
Smith’s other suspicious congressional trade
Elsewhere, Smith’s other suspicious investment from November 2023 hasn’t performed as well, indicating either that politicians are not – contrary to the doubts of many – operating on insider information or that insider information does not guarantee success.
Indeed, the Senator purchased up to $250,000 worth of shares of another relatively small medical company called Tactile Systems (NASDAQ: TCMD). Unlike Artivion, TCMD has been struggling in the stock market and has, in total, risen by only about $1.32 per share since November 8 – the time Smith made the investment.
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