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.
Picked for you
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.
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.
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.
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.
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.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.