U.S. politician makes super suspicious defense stock trade

United States Representative Gilbert Cisneros has executed a series of stock trades, with his picks in the defense sector standing out.

Specifically, Cisneros disclosed purchases of shares in Northrop Grumman (NYSE: NOC), L3Harris Technologies (NYSE: LHX), and Boeing (NYSE: BA), all major defense contractors heavily reliant on U.S. government contracts.

Each transaction ranged between $1,001 and $15,000 and took place in late May 2025. The filings were made public on June 6.

These stock purchases are noteworthy given that Cisneros sits on the House Armed Services Committee, which plays a key role in shaping military policy and defense spending, factors that directly affect these companies’ performance.

Increasing interest in defense stocks 

It’s also worth noting that defense stocks have attracted increased interest recently amid rising geopolitical tensions and conflicts, such as the Russia-Ukraine war.

Among these Congress trades, Northrop Grumman stands out with notable activity. For example, the company’s board recently approved a 12.1% quarterly dividend increase to $2.31 per share, marking its 22nd consecutive annual hike. This reflects strong cash flow, with $481 million generated from operations in Q1 2025, supporting the dividend boost.

At the end of Q1 2025, Northrop held a record backlog of $92.8 billion and projects sales between $42.0 billion and $42.5 billion for the year.

As of press time, NOC shares were valued at $489.71, up nearly 1.5% over the past month.

Cisneros stock sales 

In addition to these purchases, Cisneros sold his stake in Lockheed Martin (NYSE: LMT), another major defense contractor, on the same day he bought into Northrop and L3Harris. At press time, LMT traded at $481.85, gaining almost 2% in the last month.

Cisneros’ filings show a flurry of other trades across various industries outside the defense sector. For instance, he bought shares in Pfizer (NYSE: PFE), Johnson & Johnson (NYSE: JNJ), while selling holdings in Eli Lilly (NYSE: LLY), all within the same one-month window.

Furthermore, he joined other lawmakers in purchasing shares of UnitedHealth (NYSE: UNH) on May 30. The stock has experienced significant volatility in the past month due to a challenging financial outlook and leadership changes.

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