Congressional stock trading is a controversial practice. Senators and Representatives tend to secure much greater returns in financial markets than their constituents do.
In addition, there is no shortage of suspicious trades to be found — as U.S. politicians regularly invest in the very industries they regulate. To make matters worse, disclosure rules obscure the true amounts being invested — while the penalties for not complying with relevant rules and regulations are negligible.
Finbold’s congressional trading radar recently picked up quite an interesting Palantir (NASDAQ: PLTR) trade. On February 11, two congressmen — one a Democrat, one a Republican, invested in Palantir stock. Both of the Representatives made a significant profit in a short amount of time.
Picks for you
Even more interesting is the fact that both sit on congressional committees and subcommittees that likely provide them with a significant informational edge. On the bright side, in an era of increasing political polarization, it seems that bipartisanship is alive and well in the U.S. — at least when it comes to ethically dubious moneymaking.
Receive Signals on US Congress Members' Stock Trades
Stay up-to-date on the trading activity of US Congress members. The signal triggers based on updates from the House disclosure reports, notifying you of their latest stock transactions.
Bipartisan buy — congressmen make quick profit off of Palantir stock
James Comer, a congressman from Kentucky’s 1st congressional district and a Republican, made the first purchase on January 21.
Three days later, on January 24, the second purchase was made by Gilbert Ray Cisneros, the Representative of California’s 31st congressional district, a Democrat.
Both acquisitions were valued at between $1,001 and $15,000. Based on the timing of the purchases and the closing price of Palantir stock at the time, Comer could have purchased as few as 13 or as many as 205 PLTR shares. On the other hand, Cisneros’s purchase could have netted him between 12 and 189 units of Palantir stock.
Receive Signals on US Senators' Stock Trades
Stay up-to-date on the trading activity of US Senators. The signal triggers based on updates from the Senate disclosure reports, notifying you of their latest stock transactions.
At press time, PLTR stock was trading at a price of $116.07, having marked a 53.47% increase since the beginning of the year.
Cisneros sits on the Committee on Armed Services — as such, he likely has an informational edge when it comes to defense contracts, a key revenue driver for Palantir.
Comer is the chair of the Committee on Oversight and Accountability — which consists of several subcommittees, such as the Subcommittee on Cyber Security, Information Technology, and Government Innovation, the Subcommittee on Military and Foreign Affairs, and the Subcommittee on Federal Law Enforcement, just to name three. As chair, Comer is entitled to sit in on all of those subcommittee meetings.
Both Representatives’ trades became profitable quite quickly — since Comer’s purchase, Palantir stock has surged by 58.84%, while Cisneros’s’ trade absorbed a 46.96% rally.
Featured image via Shutterstock
