United States Senator Markwayne Mullin’s stock market involvement is again raising eyebrows after recording a 200% return on a peculiar trade.
Although the lawmaker has been involved in other popular stocks among Congress members, his purchase of Arizona-headquartered supermarket chain Sprouts Farmers Market (NASDAQ: SFM) is particularly interesting. This equity is not popular among his colleagues.
Notably, on January 4, 2024, Mullin acquired between $1,001 and $15,000 worth of SFM stock in a transaction disclosed on January 26. Since the transaction, the SFM stock price has increased by 201.55%, outperforming the S&P 500’s 29.38% rise.
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As of press time, Sprouts Farmers Market was trading at $143.83, down over 2% for the day. However, the stock has rallied 193% year-to-date in 2024.
Why Mullin’s SFM purchase is of interest
The senate trade is worth monitoring given that Sprouts Farmers Market specializes in organic products, a sector potentially influenced by environmental and regulatory policies.
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Senator Mullin, who sits on the Senate Committee on Environment and Public Works, holds key positions in several subcommittees, including those focused on chemical safety, waste management, environmental justice, clean air, climate, and nuclear safety.
These areas could intersect with Sprouts’ operations, especially as sustainability and organic regulations continue to evolve.
Indeed, this is not the only suspicious trade Mullin has been involved in recent months. As reported by Finbold, his purchases of automated water meter technologies company Badger Meters were noteworthy, as the stock surged after his acquisition.
Questions arose because Tulsa, Oklahoma’s $94 million investment in water meter upgrades last year drew attention, particularly since Senator Mullin represents Oklahoma.
Overall, the politician is among the most active Congress-trading individuals in 2024, with a volume of $4.44 million. Of this, the buy volume is over half, at $2.52 million.
Sprouts Farmers Market fundamentals
It is worth noting that Sprouts Farmers Market stands out in the supermarket industry by blending specialty products similar to those at Whole Foods with a broad range of traditional supermarket offerings.
The stock’s growth has been partly driven by its traditionally competitive prices while capitalizing on the growing trend of restrictive diets.
This strategy seems to be paying off, with the supermarket chain recording impressive financial returns. For instance, in the third quarter, Sprouts reported an 8.4% increase in same-store sales, which partly contributed to a revenue boost of 14%, reaching $1.95 billion and surpassing the $1.88 billion estimates.
At the same time, the company projects 12% full-year sales growth, 7% comparable sales growth, and adjusted EBIT of $490–$495 million, with capital expenditures estimated at $205–$215 million.
Meanwhile, the firm is targeting more expansion, recently opening nine stores and aiming to add 33 more in 2025.
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