Politicians are investing in Starbucks (SBUX)

Hello,

below a summary of relevant events happened in the stock market in the last week

📈 1/ Stocks and sectors bought by US politicians last week

This week, the trading activity at Capitol Hill was substantial, with 100 transactions taking place

Pharmaceuticals & Health Care were the most invested sectors

If you want to receive daily updates on politicians trades, click here

🏦 2/ US Politicians potential insider trading: Starbucks Surges & Gives Californian Rep a Bullish Cup

One of the biggest chains of the world’s most consumed drink, Starbucks Corp (SBUX) announced earlier this week that it would be replacing its CEO. Former CEO Laxman Narasimhan had been in the designation for only a year and a half but has experienced increasing pressure. The company reported a 3% drop in global sales during its third quarter—worse than analysts had predicted and the latest in a series of disappointing financial results. 

Interestingly, SBUX climbed back in the past five days. The stock closed at $77.03 on Aug 12 before opening at $91.02 on the day of the announcement.

The Democratic congress member serves on the House Committees on Armed Services and Oversight and Accountability and chairs the Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs. So far this year, the lawmaker has executed 24 transactions involving the multinational coffeehouse chain, with 18 of those being purchases and 6 being sales. 

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How to be notified when politicians buy / sell stocks

As seen before, some suspicious trades were made by Congress Members and their relatives

However, the GOOD NEWS is that their moves can be copied (politicians need to disclose their stock positions)

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📄 3/ Interesting stock market stories

STORY #1:  Zuckerberg Reveals Government Pressure on Meta Amid Election Season and Political Trading Shifts

As U.S. elections near, the political landscape is rapidly evolving. A recent revelation from Mark Zuckerberg, CEO of Meta Platforms, has stirred significant discussion. In a letter to the House Judiciary Committee, Zuckerberg disclosed that Meta faced substantial pressure from the Biden Administration to censor content related to COVID-19 in 2021. The pressure extended to a wide range of content, including humor and satire, and was met with frustration from the administration when Meta did not fully comply. Despite this, Zuckerberg emphasized that Meta independently decided what content to remove, criticizing the governmental pressure as inappropriate.

Zuckerberg’s letter also mentioned FBI warnings about potential Russian disinformation concerning Hunter Biden during the 2020 election. Additionally, Zuckerberg confirmed that he will not repeat his previous election-related contributions through the Chan Zuckerberg Initiative for the upcoming election cycle.

On the financial side, Meta’s stock has remained relatively stable despite these controversies. However, Congressman Josh Gottheimer sold his Meta shares on August 16, after which the stock saw a decline. In contrast, Congressman Ro Khanna increased his Meta holdings during June and July, indicating different investment strategies amidst the unfolding events. These developments contribute to the complexities of the current political and financial environment.

If you want to be notified when insiders trade stock, we send daily email alerts here 

STORY #2: Lawmaker Stocks Up on Lmt Shares Amidst Rising Market Demand

Rep. Jared Moskowitz disclosed 61 trades on August 7, 2024, marking his second disclosure this year, following a January 23 filing that reported 34 trades. Among his recent investments, he purchased between 3 to 33 shares of Lockheed Martin Corp (LMT), a leading company in aerospace systems, missile defense, and space communications. Notably, Moskowitz serves on both the House Oversight Committee and the House Foreign Affairs Committee, which may influence his investment choices.

Lockheed Martin has consistently performed well, delivering strong financial results in the second quarter of 2024. The company reported earnings per share (EPS) of $6.85, surpassing expectations of $6.46, reflecting a 6% earnings surprise. Over the past four quarters, the average EPS was $6.93, exceeding the consensus estimate of $6.54. Analysts forecast that Lockheed Martin's sales could grow by 5.2% to reach $71.08 billion for fiscal 2024, with higher estimates going up to $72.13 billion.

Moskowitz's investment in such a well-performing defense company, given his committee roles, underscores the strategic significance of these trades.

If you want to be notified when politicians trade stock, we send daily email alerts here 

STORY #3:  A Summary of the Main Trades Placed by Politicians and Insiders this Week

• Representative Nancy Pelosi is buying the (NVDA) dip, disclosing a purchase of ~$1.1M of Nvidia stock. She has lost approximately $13M in the last two weeks.

• One of the more suspicious sales this year: Representative Michael Burgess sold (UPS) the day before the stock had its worst day ever. Burgess sold on July 22nd, just before the company released a dismal earnings report, causing the stock to plummet.

• Rep. Marjorie Taylor Greene bought six stocks last month, including Crowdstrike (CRWD), which has fallen 40% since her purchase. All her selected stocks, including (ASML), (COST), (LULU), (NEE), and (NSRGY), have underperformed.

• Senator Katie Britt sold all her stock in OneWater (ONEW) last week, just before the company released a poor earnings report, leading to a 19% decline in the stock since her sale.

• Last week, we reported on Rep. Mike Collin’s purchase of a crypto token called Aerodrome, where he invested up to $50k. The token has now risen 76% since the purchase.

If you want to be notified when politicians trade stock, we send daily email alerts here 

📄 4/ Political Trading Bot

As you may remember, we have a trading bot that buys the same stocks as politicians

The bot is offered by the SEC registered broker QB, which will perform the trades. We will just provide them with the necessary data to execute

This means that every time politicians buy sizable amount of stocks, the bot buys those stocks as well

If you want to learn more about how to get access to the Political Trading Bot, click on the video below.

We assessed its performance, and it has been delivering solid results so far.

• We launched in May 2022 and the performance was +24% return

• Performance since April 2020 was +237% return