United States Representative Debbie Wasserman Schultz has acquired a stake in ViaSat (NASDAQ: VSAT), a company known for producing military communications equipment.
This purchase comes at a peculiar moment, with accelerated chatter about the possibility of World War Three stemming from the ongoing conflict between Russia and Ukraine.
Currently, markets have yet to show significant movement in response to escalating geopolitical tensions.
Schultz’s transaction, valued between $1,001 and $15,000, occurred on October 23, 2024, and was publicly disclosed on November 20.
This transaction is noteworthy, given the congresswoman’s position on the House Appropriations Subcommittee on Military Construction.
Her role involves overseeing military infrastructure and investments, raising questions about potential intersections between her legislative duties and personal financial decisions.
Therefore, this prompts speculation about possible insider trading, particularly given that Schultz has recently been involved in other questionable stock trades.
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Schultz questionable stock purchases
In August, Schultz made a rare Congress trade when she acquired a stake in Hecla Mining Company (NYSE: HL), which extracts precious metals such as gold and silver.
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At that time, gold and silver prices were surging amid fears of a potential economic downturn. Following the purchase, HL’s share price experienced a significant surge in valuation.
In general, Schultz has been an active stock trader, executing 113 trades totaling approximately $1.75 million. The information technology sector accounts for the largest share of her preferred investments, with 35 trades.
Indeed, most of the trades have accelerated in 2024 after an extended period of hibernation by the Congresswoman.
VSAT price analysis
Despite ViaSat’s relevance in defense, its stock has experienced a prolonged decline in recent months despite the escalating geopolitical tensions. Since Schultz’s purchase, the stock has plunged an additional 32%.
In the short term, ViaSat has shown strength in the short term, trading at $7.57 as of press time—a nearly 9% rally in the last 24 hours. Year-to-date, the stock remains down approximately 73%.
According to its Q2 earnings report, these losses come when the company has demonstrated notable progress. During the quarter, ViaSat reduced its net loss to $138 million from $767 million despite a slight revenue dip to $1.12 billion from $1.13 billion.
At the same time, the defense company reported record contract awards totaling $1.3 billion.
Featured image via Shutterstock
Source: https://finbold.com/u-s-politician-buys-military-tech-stock-amid-rising-ww3-fears/