US Politicians are Selling These 10 Stocks

In this article, we discuss the 10 stocks that US Politicians are selling. If you want to read about some more stocks that US Politicians are selling, go directly to US Politicians are Selling These 5 Stocks.

Recession fears in the United States stock market have been gathering pace for the past few weeks, even as economists surveyed by news platform Bloomberg expect inflation numbers to post a slower increase in the month of July compared to the figures for the same period last year and last month. Per the survey, the US consumer price index will jump 8.7% annually in July, compared to 9.1% in July 2021. This would represent a 0.2% increase compared to June 2022, against the 1.3% monthly rise recorded last year. 

Major US stocks like Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T) are already feeling the heat of a slowing economy, with all three registering declines in their share price over the past six-month period. In this overall uncertain macro environment, interest in the stock trades of US politicians, who are often privy to insider information, has risen. A website that tracks the trades on Capitol Hill reveals that US politicians from the states of Tennessee, North Carolina, and Colorado have been especially active at the market.

In the past month, three politicians from Tennessee have disclosed a total of 42 trades with a volume of around 751,000. In North Carolina, 2 politicians have disclosed 14 trades with a volume over 1 million. In Colorado, 1 politician has disclosed ten trades with a volume of more than 154,000. Some of the biggest players at the stock market from among the Congress over the past thirty days have been Diana Harshbarger, Virginia Fox, Alan Lowenthal, and Steve Cohen, among a host of others. 

Our Methodology

The companies listed below were picked from the Periodic Transaction Report(s) that US Congress members who trade stocks are obliged to file. It is important to clarify that the companies were picked from the public record of investments US Congress members and their families have made in the past few months. The purchases may not have been made by the Congress members themselves but only disclosed on behalf of their families. Data from around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

US Politicians are Selling These 10 Stocks

Copyright: carlosyudica / 123RF Stock Photo

US Politicians are Selling These Stocks

10. DuPont de Nemours Inc (NYSE:DD)

Number of Hedge Fund Holders: 50    

DuPont de Nemours Inc (NYSE:DD) provides tech-based materials and solutions. US House member Bob Gibbs on August 8 revealed a transaction related to DuPont de Nemours Inc (NYSE:DD) shares worth somewhere between $1,000 and $15,000. In the filing, disclosed a day after the transaction, Gibbs detailed that he had sold the shares of the materials and solutions firm. 

On August 8, Citi analyst P.J. Juvekar maintained a Buy rating on DuPont de Nemours Inc (NYSE:DD) stock and raised the price target to $75 from $72, appreciating the second quarter earnings results of the company. 

At the end of the first quarter of 2022, 50 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in DuPont de Nemours Inc (NYSE:DD), compared to 56 in the previous quarter worth $1.9 billion.

Just like Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T), DuPont de Nemours Inc (NYSE:DD) is one of the stocks on the radar of elite investors. 

9. KLA Corporation (NASDAQ:KLAC)

Number of Hedge Fund Holders: 52      

KLA Corporation (NASDAQ:KLAC) markets process control and yield management solutions for the semiconductor industry. According to the latest filings, US House member Zoe Longfren sold shares of KLA Corporation (NASDAQ:KLAC) worth somewhere around $1,000 and $15,000. The transaction in this regard was disclosed almost a month after it was made on July 8. 

On July 28, Deutsche Bank analyst Sidney Ho maintained a Buy rating on KLA Corporation (NASDAQ:KLAC) stock and raised the price target to $400 from $385, noting that the firm was benefiting from robust demand despite supply chain headwinds. 

At the end of the first quarter of 2022, 52 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in KLA Corporation (NASDAQ:KLAC), compared to 49 in the previous quarter worth $2.4 billion.

In its Q1 2022 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and KLA Corporation (NASDAQ:KLAC) was one of them. Here is what the fund said:

“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stock of KLA Corporation (NASDAQ:KLAC).

KLA Corporation (NASDAQ:KLAC) develops leading-edge equipment and services that enable innovation throughout the electronics industry. It specialises in process management and control in semiconductor manufacturing and the related nano-electronics industries. During manufacturing processes, products must be inspected for defects and correct critical dimensions in order to identify and eliminate possible sources of problems. As customers continue to enforce Moore’s Law, smaller chips must meet more precise specifications, which in turn increases the need for advanced inspection and diagnostic tools. This is a key step within the entire manufacturing process and one in which the company has built a very strong, and in places dominant, global position. We have been watching and waiting for an opportunity to acquire this stock for some time already, and this year’s drop in its price finally prompted us to buy.”

8. DoorDash, Inc. (NYSE:DASH)

Number of Hedge Fund Holders: 52   

DoorDash, Inc. (NYSE:DASH) is a logistics platform that connects merchants with consumers. On August 3, US House member Jim Langevin disclosed a transaction related to DoorDash, Inc. (NYSE:DASH) stock worth somewhere between $1,000 and $15,000. The member revealed that he had sold the shares of the firm worth the above mentioned amount in late July. The transaction in this regard was made public in early August. 

On August 5, Needham analyst Bernie McTernan maintained a Buy rating on DoorDash, Inc. (NYSE:DASH) stock and raised the price to $115 from $100, noting that the DashPash initiative of the firm would help it navigate macro uncertainty. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Coatue Management is a leading shareholder in DoorDash, Inc. (NYSE:DASH), with 5.2 million shares worth more than $618 million. 

7. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 53   

Eli Lilly and Company (NYSE:LLY) develops and markets human pharmaceuticals. On August 5, US House member Bob Gibbs disclosed that he had sold Eli Lilly and Company (NYSE:LLY) stock worth around $1,000-$15,000. The transaction in this regard took place a day before it was made public.  

On August 5, Morgan Stanley analyst Terence Flynn maintained an Overweight rating on Eli Lilly and Company (NYSE:LLY) stock with a price target of $395, noting that the recent weakness in the shares was a buying opportunity. 

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company (NYSE:LLY), with 1.6 million shares worth more than $485 million.  

In its Q1 2022 investor letter, Baron Funds highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:

“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company with a diverse offering primarily focused on therapeutics. Performance was strong mostly due to consistent financial growth powered by its core diabetes (and future obesity) franchise, as well as the constant drumbeat surrounding the Alzheimer’s therapeutic market, of which Eli Lilly and Company (NYSE:LLY) has one of the three potential winning blockbuster candidates in Donanemab. We retain conviction in Eli Lilly given the company’s strong long-term growth outlook.”

6. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 54    

Medtronic plc (NYSE:MDT) makes and sells device-based medical therapies.  On August 7, US House member Alan Lowenthal disclosed that he had sold Medtronic plc (NYSE:MDT) stock worth somewhere between $1,000 to $15,000. The transaction in this regard took place in late July. 

On July 18, Stifel analyst Rick Wise maintained a Buy rating on Medtronic plc (NYSE:MDT) stock and lowered the price target to $105 from $125, backing the potential of the firm for broad-based growth reacceleration. 

At the end of the first quarter of 2022, 54 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Medtronic plc (NYSE:MDT), compared to 55 in the previous quarter worth $2.7 billion.

Along with Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T), Medtronic plc (NYSE:MDT) is one of the stocks that hedge funds are monitoring. 

Here is what Polen Capital has to say about Medtronic plc (NYSE:MDT) in its Q1 2022 investor letter:

“Ireland-based Medtronic plc (NYSE:MDT) is a leading health care company focused on supplying many important life-saving devices like pacemakers, defibrillators, and insulin pumps. This is another company with attractive pricing power and a business model that can hold up well during inflationary periods. Medtronic plc (NYSE:MDT) has increased market share across almost 70% of its portfolio since the start of the pandemic, which is a higher percentage than even before the pandemic. With growth-oriented companies falling out of favor over the quarter, the stock’s relatively discounted valuation (at approximately 19x earnings) also bolstered its performance.”

 

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Disclosure. None. US Politicians are Selling These 10 Stocks is originally published on Insider Monkey.