Finbold shone a spotlight on Wednesday, December 6, on an investment move by US Representative Josh Gottheimer that has raised some eyebrows due to its uncanny timing.
As per data from the trading data platform Quiver Quantitative, Gottheimer executed an “almost perfectly timed” stock trades involving Dutch payments company Adyen.
Remarkably, the congressman, a member of the House Financial Services Committee, divested Adyen’s shares in July, just a month before the company experienced its slowest revenue growth on record, leading to a drastic 50% stock plunge.
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The timing of these trades, given his legislative role and the company’s financial downturn, has prompted scrutiny over the potential conflict of interest and insider trading concerns.
In a strategic reversal, Gottheimer reinvested in Adyen in the subsequent months. This move coincided with a rebound in the company’s stock, highlighting the congressman’s investment acumen – or sheer luck. Adyen’s shares have since posted double-digit gains, reflecting a strong recovery.
Adyen’s OTC shares pop 58% since Gottheimer’s new investment
In its initial post involving Gottheimer’s bet on Adyen, Quiver Quantitative said that after selling the stock in July prior to its sharp decline, the US representative reinvested in the company’s shares on August 21.
Since then, the company’s stock surged roughly 40%, delivering lucrative returns to the politician.
In a new update on December 6, Quiver revealed that US representative Josh Gottheimer made an additional purchase of Adyen’s shares on October 16. In less than two months since this latest transaction, the Dutch payments company’s over-the-counter (OTC) shares have witnessed an impressive surge, soaring by over 58% – from approximately $7.6 to well over $12.2 – according to Google Finance data.
The trade gains further intrigue given Adyen’s status as a financial services company and Gottheimer’s role as a member of the House Financial Services Committee.
Despite Adyen being a non-US entity, the noteworthy connection underscores the nuanced interplay between a global financial player and a key legislative figure, prompting scrutiny of the potential implications of this relationship.
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