In this article, we discuss 10 stocks US politicians bought before Russia’s attack on Ukraine. If you want to see more stocks in this selection, click 5 Stocks US Politicians Bought Before Russia’s Attack on Ukraine.
In an attempt to make personal investments by members of Congress, their staff, and public officials more transparent, a bill was passed in 2012 which banned using insider information for personal gains in trading. Similarly, US politicians are required to disclose their personal trades within 45 days of the transactions.
“We’re a free market economy”
There are mixed views about politicians trading individual stocks. In December 2021, Nancy Pelosi, speaker of the United States House of Representatives, argued that it is a free economy and politicians along with their families should be treated as normal investors who participate in the stock market. However, a vast majority disagrees with her, believing that public officials benefit from insider information to profit from market irregularities. For example, many members of the Congress disposed of their stocks before the markets crashed in 2020 as the COVID-19 pandemic started gaining media attention.
It was reported on February 9 that after receiving backlash for her comments, House speaker Nancy Pelosi has given up her battle and is helping to craft a legislation that bans Congress members from trading. This legislation will be put up for voting later. The US Senate is also formulating a similar legislation, which is co-authored by senators Elizabeth Warren and Steve Daines.
Before Russia invaded Ukraine on February 24, many politicians loaded up on stocks that have gained significantly in the last month. Some of the most notable purchases by US Congress members included Lockheed Martin Corporation (NYSE:LMT), Chevron Corporation (NYSE:CVX), and Block, Inc. (NYSE:SQ), among others discussed at length below.
Photo by Joel Rivera-Camacho on Unsplash
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 from February 1 to February 24. 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.
Stocks US Politicians Bought Before Russia’s Attack on Ukraine
10. ONEOK, Inc. (NYSE:OKE)
Number of Hedge Fund Holders: 25
ONEOK, Inc. (NYSE:OKE) was founded in 1906 and is headquartered in Tulsa, Oklahoma. The company is engaged in processing, storing, and transporting natural gas in the United States. Amid the energy crisis caused by the Russian attack on Ukraine, the stock has gained close to 14% over the last month.
Kevin Hern, a Republican from Oklahoma’s 1st congressional district who is a member of the United States House of Representatives, purchased shares of ONEOK, Inc. (NYSE:OKE) on February 14. The transaction was disclosed the next day. He bought a position in the company worth between $1,001 and $15,000.
ONEOK, Inc. (NYSE:OKE) delivers a dividend yield of 5.45% as of March 21. ONEOK, Inc. (NYSE:OKE) declared a $0.935 per share quarterly dividend on January 19, which was paid to shareholders on February 14.
Truist analyst Tristan Richardson raised the price target on ONEOK, Inc. (NYSE:OKE) to $78 from $72 and kept a Buy rating on the shares on March 3. He stated that ONEOK, Inc. (NYSE:OKE) shares should continue to find positive support as the Bakken oil field offers sufficient leverage in the current environment, and there is potential for outsized earnings growth relative to broader midstream.
According to the fourth quarter database of Insider Monkey, 25 hedge funds were bullish on ONEOK, Inc. (NYSE:OKE), up from 18 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the leading shareholder of ONEOK, Inc. (NYSE:OKE), with 475,200 shares worth approximately $28 million.
In addition to Lockheed Martin Corporation (NYSE:LMT), Chevron Corporation (NYSE:CVX), and Block, Inc. (NYSE:SQ), institutional investors are loading up on ONEOK, Inc. (NYSE:OKE).
Here is what Miller Howard Investments has to say about ONEOK, Inc. (NYSE:OKE) in its Q3 2021 investor letter:
“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We added ONEOK Inc. (OKE) with the expectation that it will benefit from increasing natural gas and natural gas liquids (NGL) recovery in the Bakken region.”
9. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is a company that operates a natural gas transportation pipeline and natural gas storage facilities. The company also supplies natural gas to electric utilities, independent power plants, and industrial end-users. Energy Transfer LP (NYSE:ET) is based in Dallas, Texas.
Mark Green is a United States representative for Tennessee’s 7th congressional district, and he is one of the most active traders in Congress. He disclosed on February 11 a transaction for common stock of Energy Transfer LP (NYSE:ET) worth between $500,001 to $1,000,000. The purchase took place on February 9.
On February 16, Energy Transfer LP (NYSE:ET) rose 3.6% after the Q4 revenue topped expectations and the adjusted EBITDA of $2.81 billion came in above the $2.76 billion analyst consensus estimate. Management reported that the improved results were primarily driven by higher natural gas liquids transportation and export volumes, as well as an increase in commodity prices.
Mizuho analyst Gabriel Moreen on February 18 raised the price target on Energy Transfer LP (NYSE:ET) to $14 from $13 and kept a Buy rating on the shares. According to the analyst, positive commercial updates by Energy Transfer LP (NYSE:ET) that reflect growth potential in the current market are more notable than the company’s “strong” 2022 EBITDA guidance.
A total of 36 hedge funds were long Energy Transfer LP (NYSE:ET) in Q4 2021, up from 29 funds in the earlier quarter. Abrams Capital Management owned the leading stake in the company, with more than 22 million shares worth $182 million.
Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. Here is what the fund said:
“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”
8. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 36
Duke Energy Corporation (NYSE:DUK) was founded in 1904 and is headquartered in Charlotte, North Carolina. The company uses coal, hydroelectric, natural gas, oil, renewable sources, and nuclear fuel to generate electricity. Duke Energy Corporation (NYSE:DUK) operates via three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. Amid the macro war backdrop, the stock has gained 6.75% in the last month.
Virginia Foxx, the Republican U.S. representative for North Carolina’s 5th congressional district, purchased on February 11 shares of Duke Energy Corporation (NYSE:DUK) worth between $15,001 and $50,000, as per the Period Transaction Report published on her behalf.
On March 21, Duke Energy Corporation (NYSE:DUK) along with its subsidiaries entered into an amended credit agreement that raised the amount of the credit facility available to the company from $8 billion to $9 billion, extending the termination date to March 2027 from March 2025.
Duke Energy Corporation (NYSE:DUK) announced its clean energy goals on February 9, stating that coal will represent less than 5% of total energy generation by 2030, and the company aims to fully exit coal as a power resource by 2035. The net-zero goals for 2050 include the reduction of Scope 2 and Scope 3 emissions across its value chain.
BofA analyst Julien Dumoulin-Smith upgraded Duke Energy Corporation (NYSE:DUK) on February 14 to Buy from Neutral with a $110 price target after its Q4 results. According to the analyst, Duke Energy Corporation (NYSE:DUK) is positioned to “over-deliver” on a few aspects of its 2022 plan, and management has set highly achievable expectations. In what will be a transformative year for Duke Energy Corporation (NYSE:DUK), the analyst sees the current valuation as an attractive entry point for the stock.
Among the hedge funds tracked by Insider Monkey, 36 funds were bullish on Duke Energy Corporation (NYSE:DUK), up from 32 funds in the prior quarter. Renaissance Technologies is the largest shareholder of the company, with 1.74 million shares worth $183.2 million.
7. FirstEnergy Corp. (NYSE:FE)
Number of Hedge Fund Holders: 40
FirstEnergy Corp. (NYSE:FE) has gained almost 6.50% in the last month as the Russian attack on Ukraine sent energy stocks soaring. FirstEnergy Corp. (NYSE:FE) is an Ohio-based electricity provider, using coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities.
Earl Blumenauer is an American Democrat who serves as the U.S. representative for Oregon’s 3rd congressional district. The politician bought FirstEnergy Corp. (NYSE:FE) shares on February 11, valued somewhere between $1,001 and $15,000. The purchase was disclosed on March 7.
On January 7, Evercore ISI analyst Michael Lonegan upgraded FirstEnergy Corp. (NYSE:FE) to Outperform from In Line with a price target of $46, up from $40. The analyst believes FirstEnergy Corp. (NYSE:FE) shares offer investors an “inexpensive opportunity” that has not yet completely realized the advantages of shifting to a fully regulated electric utility.
According to the fourth quarter database of Insider Monkey, 40 hedge funds held long positions in FirstEnergy Corp. (NYSE:FE), compared to 38 funds in the prior quarter. The total stakes held in Q4 by elite funds amounted to $1.75 billion. Carl Icahn’s Icahn Capital LP is the biggest shareholder of the company, owning approximately 19 million shares worth $788.8 million.
FirstEnergy Corp. (NYSE:FE) was on the radar of US politicians prior to the Ukraine war, in addition to Lockheed Martin Corporation (NYSE:LMT), Chevron Corporation (NYSE:CVX), and Block, Inc. (NYSE:SQ).
6. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 42
Lockheed Martin Corporation (NYSE:LMT) stock has climbed almost 14% in the last month amid the Russian invasion of Ukraine, given investors flock to defense stocks in a war situation. Lockheed Martin Corporation (NYSE:LMT) is an aerospace and defense technology company that operates via four main segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.
Marjorie Greene, a Republican who has served as the U.S. representative for Georgia’s 14th congressional district since 2021, purchased shares of Lockheed Martin Corporation (NYSE:LMT) on February 22, valued at between $1,001 and $15,000. The transaction was disclosed via a Periodic Transaction Report on February 24.
On March 21, the Missiles and Fire Control segment of Lockheed Martin Corporation (NYSE:LMT) was awarded a $318.93 million fixed-price contract modification to the previous contract put forward by the US Air Force Life Cycle Management Center, and the work is expected to conclude by January 31, 2026. The total cumulative face value of the contract is $988.55 million.
Wells Fargo analyst Matthew Akers raised the price target on Lockheed Martin Corporation (NYSE:LMT) to $486 from $400 on March 7 and kept an Equal Weight rating on the shares. The analyst believes valuation is likely to remain elevated given the geopolitical tensions for some time to come.
D E Shaw is a prominent Lockheed Martin Corporation (NYSE:LMT) shareholder, with a position worth $171.3 million. Overall, 42 hedge funds were bullish on the stock at the end of December 2021.
Here is what Vltava Fund has to say about Lockheed Martin Corporation (NYSE:LMT) in its Q4 2021 investor letter:
“Of course, not all of our companies are doing better than we expected. Lockheed Martin fell somewhat short of our expectations last year. In the cases of Lockheed disruptions in the supply and logistics chains. Lockheed uses a great many subcontractors from various countries and could not avoid issues with continuity of supplies. As a result, production will be slightly lower than we had expected.”
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Disclosure: None. 10 Stocks US Politicians Bought Before Russia’s Attack on Ukraine is originally published on Insider Monkey.
