Nancy Pelosi is a woman of many talents. Beyond a storied career in public office, the former Speaker of the House and current Representative of California’s 11th congressional district is also a masterful stock trader.
Pelosi has an at times preternatural ability to invest in a company at just the right time. Over the course of 2024, her portfolio secured a 146.2% return. Moreover, the mere announcement that she has gone long on an equity causes a price surge more often than not.
The congresswoman’s latest investment is Tempus AI (NASDAQ: TEM) — a business that leverages artificial intelligence (AI) for precision diagnostics. Finbold’s congressional trading radar picked up the former Speaker’s $50,000 to $100,000 purchase of TEM stock on January 14 from a periodic transaction report made public on January 17.
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By the end of the month, the price of Tempus AI stock had skyrocketed by 90%. Chief executive officer (CEO) Eric Lefkofsky certainly noticed — as he used the surge to dump $62 million worth of TEM shares between January 22 and January 24, after Pelosi’s purchase became public. This was followed by another $13 million sale that occured between January 29 and January 31.
However, Wall Street has generally remained quiet — until now. On February 5, an analyst from one of the Street’s premier firms finally reinitiated coverage on Nancy Pelosi’s latest stock bet.
TD Cowen projects an 11% upside for Nancy Pelosi AI stock
Dan Brennan, CFA, a senior equity research analyst at TD Cowen who covers the life science sector, gave TEM stock a ‘Buy’ rating while increasing his price target from $50, a mark set on July 9 of 2024, up to $74.
At press time, Tempus AI shares were changing hands at a price of $68.49, after a 10.74% surge on the daily chart. Brennan’s forecast implies an 8.04% upside.
In a note shared with investors, the researcher cited the company’s recent $600 million acquisition of testing and diagnostic company Ambry Genetics as a positive catalyst going forward.
Further clarifying, Brennan stated that “The deal affords TEM with a $300M+, profitable germline testing lab (low/mid teens EBITDA %) & offers opportunities to enhance TEM’s existing products, expand into new areas & provides path to +FCF, with the main drawback Ambry’s slower growth.”
As bullish as most of the recent developments surrounding the company have been, readers should note that parabolic rallies like these are usually followed by steep corrections. Should this occur, investors could have a much more attractive entry point for a long position on the Nancy Pelosi AI stock.
Featured image via Shutterstock
