Due to their appeal, US politicians and their insider trades rarely go unnoticed by the trading community. However, some trades fly under the radar, as is the case with Senator Tina Smith’s trade.
Senator Tina Smith purchased approximately $250,000 worth of stock in Tactile Systems (NASDAQ: TCMD), a medical devices company. Since her purchase, the stock has increased significantly by over 58%, meaning that her investment is now worth $395,000.
This investment holds particular significance as Senator Smith serves on the Senate Committee on Health, aligning with the industry of the company she invested in, as reported by Quiver Quantitative on March 11.
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Additionally, Tactile Systems is headquartered in Minnesota, a state Senator Smith represents, underscoring a potential connection to her constituents’ interests. Notably, Tactile Systems is among the smaller companies that politicians usually don’t invest in, boasting a market capitalization of less than $500 million.
TCMD stock is a recipient of millions of US government dollars
A significant factor likely contributing to the positive outlook for TCMD stock and prospective market performance is the substantial funding received by its parent company, Tactile Systems, from the US government.
This funding is approximately $8 million, predominantly allocated by the healthcare and veterans departments. The funds are primarily intended to facilitate the provision of medical devices and supplies to hospitals and eldercare institutions, underscoring the company’s potential for growth and stability in the healthcare sector.
TCMD stock analysis
TCMD stock’s daily performance shows its current trading price is $15.83, reflecting a 0.57% increase from the previous close.
These gains contributed to a positive trend over the last five trading sessions, during which TCMD stock saw a cumulative rise of 3.46% in valuation.
Since the beginning of the year, TCMD stock has demonstrated an overall growth of 11.17%.
Senator Smith’s investment appears to perform strongly, consistently generating healthy gains despite minor fluctuations. Particularly noteworthy is the remarkable 50% growth observed since November.
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