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US politician buys this defense stock right before pushing to confront Iran

US politician buys this defense stock right before pushing to confront Iran
Elmaz Sabovic

Insider trading has been a significant problem in US politics, with various senators, representatives, and politicians seated in committees that grant them access to information that allows them to beat the market.

In the midst of these, one trade raises suspicion, mainly because of the subsequent post from the same politician that may have grave and long-lasting consequences.

Congresswoman Kathy Manning posted her reaction after the news of the killings of 3 US service members in Jordan, calling for holding Iran accountable.

This action might be viewed as compassionate and humane if you weren’t a member of the Committee on Foreign Affairs, which directly shaped legislation concerning war powers and military deployments abroad, and you hadn’t purchased Lockheed Martin (NYSE: LMT) stock five days before this.

Congresswoman Kathy Manning purchased LMT stock on January 23. Source: congresstrading.com
Congresswoman Kathy Manning purchased LMT stock on January 23. Source: congresstrading.com

Collaboration between Lockheed Martin and the US government

Taking aside the ordinary politicians, Lockheed Martin and the US government have a long-lasting history of cooperation. As the largest customer, the US government contributed nearly 70% of the company’s revenue in 2018. Lockheed Martin represents 28% of the US Department of Defense’s (DoD’s) overall military procurement. 

Additionally, many of the company’s international clients are US government allies, requiring US government approval for purchases from Lockheed Martin.

Lockheed Martin sales to the US government in the last 20 years. Source: Statista
Lockheed Martin sales to the US government in the last 20 years. Source: Statista

In 2022, LMT recorded net sales of approximately $48.5 billion to the US Government, marking the highest figure within the period examined.

Lockheed Martin stock price analysis

At the time of press, LMT stock was trading at $430.10, marking a 0.74% increase since the previous closure on February 7. This stock lost -0.12% of its value in the last five trading sessions.

LMT 24-hour stock price chart. Source: Finbold
LMT 24-hour stock price chart. Source: Finbold

Looking at the technical indicators spells out quite a bearish sentiment with an overall ‘sell’ rating. Moving averages point towards a ‘strong sell,’ while oscillators are tilting towards a ‘neutral’ rating.

Technical indicators for LMT stock. Source: TradingView
Technical indicators for LMT stock. Source: TradingView

Whether the insider trading problem will get resolved or we will continue to see politicians making profits leveraging knowledge inaccessible to the broader public remains to be seen.

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