For years, United States politicians have built a reputation for favoring defense stocks, coinciding with escalating global geopolitical tensions.
Among the preferred stocks is Lockheed Martin (NYSE: LMT), a leading global aerospace, defense, and security company. The equity has soared significantly in recent months, closing at $556 on August 12. Year-to-date, LMT is up over 22%, and the stock has surged 20% in the last month alone.
Consequently, these stock returns have translated into notable profits for select US politicians, according to data provided by the charting platform Trend Spider in an X post on August 13.
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“LMT Congress members laughing straight to the bank,” the platform noted.
Key members of Congress, including Representatives Kevin Hern, Kathy Manning, and Jared Moskowitz, made significant purchases of Lockheed Martin shares.
In this line, data provided by Quiver Quant indicates that Representative Hern made his purchase on June 28. Since then, LMT has soared almost 20%.
Manning’s investment was reported on January 23, and the stock has rallied over 26% since then.
Moskowitz joined the ranks on July 1, reinforcing confidence in Lockheed Martin’s future performance. Since his purchase, the equity has gained almost 20%.
Over the past months, Lockheed Martin’s stock has shown a robust performance trajectory. The company’s position as a premier defense contractor, strategic initiatives, and consistent contract wins have buoyed investor confidence.
Questions on conflict of interest
Overall, Congress members’ success in these investments raises perennial questions about the ethics of insider trading and the potential conflicts of interest inherent in politicians trading stocks of companies that their legislative decisions may directly impact.
However, critics argue that such trades could undermine public trust in government officials, while proponents maintain that these investments demonstrate personal confidence in the American defense industry.
In the meantime, LMT has soared, buoyed by positive news around its business and favorable analyst ratings. For instance, RBC analyst Ken Herbert upgraded shares to Buy from Hold, with a price target of $500 to $600.
Experts attribute the positive ratings to the defense giant’s sales growth, such as the resumption of F-35 deliveries to the United States military.
Overall, defense stocks typically trade based on expectations for government spending, the global threat level, and developments in each defense contractor’s key programs.
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