In this article, we discuss 10 stocks US Congressmen are selling. If you want to see some more stocks in this selection, click 5 Stocks US Congressmen Are Selling.
While many Americans believe that the system is rigged and politicians are privy to information that is not disclosed to the public, they sometimes look closely at the country’s lawmakers’ trades and try to replicate the portfolios of notable senators and House representatives. The idea is to gain from the calls of those in the know about knowledge that is kept from regular investors.
Recently, about 59 Congress members have been identified who did not disclose their trades in the time that is required by law, as per the Stop Trading on Congressional Knowledge Act of 2012. This law was passed in the hopes of controlling insider trading and allowing transparency when it comes to stock transactions. The members of Congress are thus supposed to disclose trades conducted personally, by a spouse, or a dependent child within 45 days of a transaction.
In the past few weeks, US Congressmen have been discarding shares of Pfizer Inc. (NYSE:PFE), Alibaba Group Holding Limited (NYSE:BABA), and Meta Platforms, Inc. (NASDAQ:FB), among others discussed in detail below.
Our Methodology
The companies listed below were picked from the Periodic Transaction Report(s) that US politicians are obliged to file. It is important to clarify that the companies listed below were picked from the public record of investments that US politicians and their families have made in the last few weeks. The purchases may not have been made by the politicians themselves but only disclosed on behalf of their family.
Data from 900+ elite hedge funds tracked by Insider Monkey in Q4 2021 was used to identify the number of hedge funds that hold stakes in each firm.
US Congress Public Domain
Stocks US Congressmen Are Selling
10. EnLink Midstream, LLC (NYSE:ENLC)
Number of Hedge Fund Holders: 8
EnLink Midstream, LLC (NYSE:ENLC) was incorporated in 2013 and is based in Dallas, Texas, operating as a midstream energy company selling natural gas, natural gas liquids, and condensate crude oil.
Mark Green, the U.S. representative for Tennessee’s 7th congressional district, sold shares of EnLink Midstream, LLC (NYSE:ENLC) on March 2 worth somewhere between $250,001 and $500,000. The transaction was disclosed via a Periodic Transaction Report dated March 7.
On February 15, EnLink Midstream (NYSE:ENLC) shares rose 2% after outperforming market consensus for Q4 earnings and revenue. The company also reported its plans to develop carbon capture solutions in Louisiana in partnership with Talos Energy Inc. (NYSE:TALO).
Mizuho analyst Gabriel Moreen raised the price target on EnLink Midstream (NYSE:ENLC) on February 17 to $9 from $8 and kept a Neutral rating on the shares. The analyst noted that operational tailwinds led EnLink Midstream (NYSE:ENLC) to finish 2021 at the higher end of its guidance for the year, and the company also guided a fiscal 2022 above the Street estimates.
Among the hedge funds tracked by Insider Monkey, 8 funds were bullish on EnLink Midstream (NYSE:ENLC), compared to 10 funds in the prior quarter. The total stakes held in Q4 amounted to $20.3 million.
In addition to Pfizer Inc. (NYSE:PFE), Alibaba Group Holding Limited (NYSE:BABA), and Meta Platforms, Inc. (NASDAQ:FB), EnLink Midstream (NYSE:ENLC) is one of the stocks that US Congressmen are discarding.
9. NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 36
NetApp, Inc. (NASDAQ:NTAP) is a California-based cloud computing and data management company that offers multiple networking and storage solutions. Douglas Lamborn, the U.S. representative for Colorado’s 5th congressional district, disposed of shares of NetApp, Inc. (NASDAQ:NTAP) on February 14, worth between $15,001 and $50,000.
On February 23, NetApp, Inc. (NASDAQ:NTAP) reported its Q4 results. The company exceeded estimates for earnings per share, which came in at $1.44. The fourth quarter revenue of $1.61 billion missed estimates by approximately $654,000.
BofA analyst Wamsi Mohan downgraded NetApp, Inc. (NASDAQ:NTAP) on March 24 to Neutral from Buy with a price target of $96, down from $100. While the analyst remains positive about the company’s “continued strong execution”, he also believes that the finances necessary for growth will hinder NetApp, Inc. (NASDAQ:NTAP) from realizing operating leverage, which will limit upside in shares from current levels.
According to the Q4 database of Insider Monkey, 36 hedge funds were bullish on NetApp, Inc. (NASDAQ:NTAP), compared to 29 funds in the earlier quarter. Arrowstreet Capital is the leading shareholder of NetApp, Inc. (NASDAQ:NTAP), with 2.5 million shares worth $237.7 million.
Here is what Miller Howard Investments has to say about NetApp, Inc. (NASDAQ:NTAP) in its Q3 2021 investor letter:
“Technology remains important in our portfolios, although the sector weights have come down over the past year. We now hold NetApp (NTAP) of which has a strong growth prospects, yet attractive valuations in our view. Unlike many younger tech companies, we believe our holdings should significantly benefit from an upturn in the economy.”
8. Deckers Outdoor Corporation (NYSE:DECK)
Number of Hedge Fund Holders: 46
Deckers Outdoor Corporation (NYSE:DECK) was founded in 1973 and is headquartered in Goleta, California. It is a fashion and lifestyle company that designs and markets footwear, apparel, and accessories. Deckers Outdoor Corporation (NYSE:DECK) sells its products under the UGG, Teva, Sanuk, Hoka One One, and Koolaburra brands.
Alan Lowenthal is an American Democrat who serves as the U.S. representative for California’s 47th congressional district. He disclosed on March 20 a sale of Deckers Outdoor Corporation (NYSE:DECK) shares worth between $15,001 and $50,000. The transaction took place on March 7.
Cowen analyst John Kernan lowered the price target on Deckers Outdoor Corporation (NYSE:DECK) on February 4 to $358 from $478 and reiterated an Outperform rating on the shares. The analyst noted that gross margin pressure through 1H2023 is expected, as higher prices will not offset increased air freight costs. He lowered his 2023 EPS estimate by 13% and adjusted his price target accordingly.
According to the fourth quarter database of Insider Monkey, 46 hedge funds were bullish on Deckers Outdoor Corporation (NYSE:DECK), compared to 48 funds in the earlier quarter. Steadfast Capital Management is the biggest shareholder of Deckers Outdoor Corporation (NYSE:DECK), with 800,692 shares worth $293.3 million.
7. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 47
Monster Beverage Corporation (NASDAQ:MNST) is a California-based company that provides energy drinks such as Monster Energy, Relentless, and Burn. Michael McCaul, the U.S. representative for Texas’s 10th congressional district, sold shares of Monster Beverage Corporation (NASDAQ:MNST) that were valued between $100,001 and $250,000. The transaction was disclosed on March 7 via a Periodic Transaction Report on behalf of the politician.
On March 10, Stifel analyst Mark Astrachan reiterated a Buy rating on the shares, while lowering the price target on Monster Beverage Corporation (NASDAQ:MNST) to $103 from $107. He also reduced his 2022-2023 EPS estimates by 2% to reflect greater inflation, primarily in aluminum, along with lower sales given Ukraine/Russia exposure, and higher gas prices in the United States.
According to Insider Monkey’s Q4 data, 47 hedge funds were bullish on Monster Beverage Corporation (NASDAQ:MNST), up from 42 funds in the earlier quarter. Renaissance Technologies held the largest stake in Monster Beverage Corporation (NASDAQ:MNST), with 6.4 million shares worth close to $624 million.
6. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 64
American Express Company (NYSE:AXP) is a financial services corporation that primarily deals in charge and credit payment card products. John Curtis, a Republican who serves as the U.S. representative for Utah’s 3rd congressional district, disclosed a Periodic Transaction Report on March 15 indicating the sale of American Express Company (NYSE:AXP) stock worth between $1,001 and $15,000. The transaction took place on March 9.
On March 17, Morgan Stanley analyst Betsy Graseck announced that she is maintaining her 2022-24 revenue growth estimates for American Express Company (NYSE:AXP), although she observed that the company provided investors multiple data points to support their long-term guidance for over 10% revenue growth and mid-teens EPS growth. She sees American Express Company (NYSE:AXP) shares as undervalued and “positioned for multiple expansion.” Graseck reiterated an Overweight rating and a $218 price target on the stock.
According to the fourth quarter database of Insider Monkey, 64 hedge funds placed long calls on American Express Company (NYSE:AXP), up from 57 funds in the earlier quarter. Berkshire Hathaway is the leading shareholder of the company, with 151.6 million shares worth approximately $25 billion.
American Express Company (NYSE:AXP) is on the radar of US Congress members, just like Pfizer Inc. (NYSE:PFE), Alibaba Group Holding Limited (NYSE:BABA), and Meta Platforms, Inc. (NASDAQ:FB).
Here is what ClearBridge Investments has to say about American Express Company (NYSE:AXP) in its Q2 2021 investor letter:
“In financials, American Express has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”
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Disclosure: None. 10 Stocks US Congressmen Are Selling is originally published on Insider Monkey.
