As geopolitical tensions escalate, particularly in the Middle East, Representative Jared Moskowitz has made what can be considered a suspicious defense stock purchase.
The lawmaker, who sits on the House Committee on Foreign Affairs, disclosed on December 9 that he had purchased between $1,001 and $15,000 worth of Lockheed Martin (NYSE: LMT) stock, a major defense contractor, on November 8, 2024.
This trade was not an isolated incident, as Moskowitz also invested in other companies, including McDonald’s (NYSE: MCD), Meta (NASDAQ: META) and Nvidia (NASDAQ: NVDA).
Historical filings show that the politician has previously acquired a stake in the company during critical moments coinciding with major developments, such as the awarding of key military contracts.
As reported by Finbold, his other notable LMT acquisition emerged in July, with stock rising about 20% barely a month after the purchase.
Moskowitz, along with Representatives Kevin Hern and Kathy Manning, are among the most prominent buyers of Lockheed Martin stock on Capitol Hill.
Their trade timing has faced scrutiny, especially after the company received a major $3.4 billion modification contract for the U.S. Army’s guided multiple-launch rocket system.
These Congress trades have raised questions about the potential for insider trading, given that individuals such as Moskowitz might have privileged information courtesy of their roles on House committees.
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LMT’s growth potential
Lockheed Martin is an attractive choice for defense sector investors because it is a reliable U.S. government contractor.
The government has historically maintained steady defense budgets, even during economic downturns, while rising geopolitical tensions continue to boost demand for defense stocks like LMT.
As of press time, LMT stock was trading at $514.67, a modest gain of 0.14% from the previous trading session. Year-to-date, the stock has risen by 12%.
The company is poised to end 2024 on a strong note, projecting full-year sales of $71.25 billion, slightly exceeding the midpoint of its earlier forecast of $70.50 to $71.50 billion.
Lockheed Martin also raised its per-share profit outlook to $26.65, up from its prior range of $26.10 to $26.60.
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Source: https://finbold.com/u-s-politician-makes-super-suspicious-trade-in-this-war-stock/