In a move raising eyebrows, U.S. Congressman Michael Burgess sold shares of United Parcel Service (NYSE: UPS) on July 22, just a day before the stock experienced its worst day in history.
On July 23, UPS released a dismal Q2 earnings report that sent the stock plummeting.
Following the report, UPS shares fell from $145.18 to $127.68, a dramatic 12% drop. This marked the stock’s steepest single-day decline, as investors reacted to the company’s weaker-than-expected performance. Since then, UPS has recovered slightly, trading at $130.64 at the time of publication.
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Congress trading remains under scrutiny
The timing of Burgess’s sale has been labeled one of the more suspicious transactions of the year, given that it occurred just before UPS revealed its disappointing financial performance, which led to a sharp decline in the stock’s value.
The Congressman, who represents Texas’s 26th congressional district in the United States House of Representatives, sold between $1,001 and $15,000 in UPS shares, according to the July 31 filing.
These actions come amid ongoing scrutiny of stock trading activities by high-profile Senators, members of Congress, and their families.
As scrutiny intensifies, the Burgess transaction will no doubt continue to ignite discussions about the need for stricter regulations and oversight concerning financial activities by those in positions of power.
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