The term “insider trading” takes on a different significance for regular investors when they discover that specific traders possess information about stocks or potential government investments that aren’t accessible to everyone.
Another instance of these unjust trades involves a US Representative, Josh Gottheimer, who purchased shares of Adyen NV (AMS: ADYEN) in October 2023.
You might wonder why this trade seems suspicious. Since then, Adyen’s stock price has surged by over 109%. Notably, it belongs to a financial services company, and it’s worth mentioning that Gottheimer serves on the House Financial Services Committee.
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Financial surprise from Adyen stock
On February 8, Adyen unveiled its H2 earnings, prompting a 26% surge in the stock price. During the latter half of 2023, Adyen experienced a 23% year-over-year revenue increase, reaching €887 million, surpassing the consensus of €879 million by 1%.
This growth represents an acceleration from the 21% seen in H1, aligning with management’s earlier commitments.
Additionally, EBITDA amounted to €423 million, surpassing analysts’ projections of €401 million by 5.5%.
This revenue growth comes as no surprise, as Ayden is a financial service for customers like Uber (NYSE: UBER), McDonald’s (NYSE: MCD), Spotify (NYSE: SPOT), and Microsoft (NASDAQ: MSFT).
Other trades by Gottheimer
Gottheimer stands out as one of the most actively trading US politicians while holding office, seemingly breaching the STOCK Act. Quiver Quantitative reported over 277 potential violations by him as of December 28.
Furthermore, on December 11, Representative Josh Gottheimer revealed trades of Microsoft options valued at up to $50 million. Although he vowed to place his funds in a blind trust in 2022, he has yet to do so. Calculations suggest that Gottheimer accumulated over $20 million in wealth during his office.
Given his role on the House Financial Services Committee, particularly in the area of Investor Protection, these trades raise additional levels of suspicion.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
