Seven Lakes Weekly Summary

Hello Seven Lakers,

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 ~266 transactions taking place

Banks & Capital Markets were the most invested sectors

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

🏦 2/ US Politicians potential insider trading: Rep. McCaul sold just before auto stock dropped

• Serving as Chairman of the House Committee on Foreign Affairs, Rep. Michael McCaul's stock transactions have often gained traction amongst investors

• Notably active in the Industrials sector, McCaul made headlines in September 2023 as he sold $113.13 million of financial assets (bonds and stocks)

• One trade revealed in his last trade disclosure was McCaul’s spouse selling Advance Auto Parts Inc (AAP:US) shares

• The sale was of up to 4,180 shares, valued between $100,000 and $250,000

• Since the sale, AAP stock has declined by 16.68%, mirroring broader market trends

• Advance Auto Parts Inc. reported modest Q2 2023 earnings, contributing to the stock's recent dip

If you want to receive daily updates on political trading, click here 

🔔 3/ 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)

The Seven Lakes Research analyst team provides PREMIUM detailed updates from Monday to Friday with all the relevant fact on: 

Click on the button below to start receiving them 👇👇👇👇👇

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📄 4/ Interesting stock market stories

STORY #1: As Middle East crisis intensifies, lawmakers engaged in defense stock transactions

Defense Stock Performance Prior to Recent Events:

• Defense stocks had seen a decline in returns.

• RTX Corp (RTX:US) dropped by 26.61% since beginning of 2023

• Lockheed Martin Corp (LMT:US) and Northrop Grumman Corp (NOC:US) were down by 7.77% and 9.49% since beginning of 2023, respectively.

• However, the latter two companies recently recovered due to the ongoing Middle East conflict

Senator Markwayne Mullin's Investment in Raytheon Technologies:

• On September 13, 2023, Senator Markwayne Mullin purchased Raytheon Technologies stock (RTX)

• He acquired between $15,000 and $50,000 worth of RTX shares.

• The stock initially dipped after his trade but showed signs of recovery in late October.

• Mullin represents Oklahoma in various Senate committees, and since October 6, RTX stock increased by 6.03%.

Congress Member Kevin Hern's Investment in RTX:

• Also from a joint account, Kevin Hern acquired 178 shares of RTX on September 7, 2023, at a price of $84.33 per share.

Josh Gottheimer's Purchase of Northrop Grumman Corp Shares:

• On September 26, 2023, Josh Gottheimer purchased shares of Northrop Grumman Corp (NOC)

• The transaction's value ranged between $1,000 and $15,000.

• The trade history for NOC showed an uptrend in stock price following Gottheimer's transaction, with a notable 15.6% increase by October 16.

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

Analyst Opinions on Defense Stocks:

• Some analysts predict that the rally in defense stocks may be short-lived, similar to the situation in February 2022 when Russia first invaded Ukraine.

• However, there are lawmakers who continue to hold stakes in multiple defense stocks, demonstrating their confidence in the industry's prospects.

• If you want daily updates on analyst ratings and when they upgrade / downgrade stocks, we send daily email alerts here

STORY #2: Tesla's Stock Declines Amidst Impact of Musk's Statements and Financial Performance

Elon Musk's Concerns and Impact on Tesla Shares: 

• Tesla (TSLA:US) CEO Elon Musk expressed worry about the effects of high-interest rates on potential car buyers

• He also displayed hesitation regarding the company's plans for a factory in Mexico

• These concerns, along with soft Q3 results, led to a 7% drop in Tesla shares on Thursday, following a 4.8% decline on Wednesday.

Tesla's Missed Expectations in Q3:

• Tesla fell short of Wall Street's a expectations for the third quarter in terms of gross margin, profit, and revenue.

• Adjusted earnings per share were $0.66, missing the analyst targets of $0.73.

• Revenue stood at $23.35 billion, whereas analysts were anticipating up to $24.1 billion.

• If you want daily updates on analyst ratings and when they upgrade / downgrade stocks, we send daily email alerts here 

Elon Musk's Caution on the Mexico Factory:

• Musk, during the earnings call, expressed caution about proceeding at full speed with the Mexico factory

• He cited the need to assess the economic outlook, emphasizing concerns related to macroeconomic conditions and rising interest rates making cars unaffordable for potential buyers.

Cybertruck Production and Financial Outlook: 

• Musk offered less optimistic remarks about the Cybertruck, despite Tesla maintaining its earlier production goals.

• He noted that achieving volume production and positive cash flow at an affordable price would require significant effort.

• Musk stated that it might take a year to 18 months before the Cybertruck becomes a substantial contributor to positive cash flow.

Shift in Musk's Tone: 

• Musk's concerns about expansion and affordability mark a change in his perspective compared to a year ago when he described Tesla as "recession resilient."

 Investment by Lawmakers in TSLA Stock:

• Senator Sheldon Whitehouse reported investing up to $15,000 in TSLA stock on September 20

• Congressman Josh Gottheimer also purchased shares of the electric vehicle (EV) manufacturer within the same price range.

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