One of the most frequent stock traders in Congress recently sold shares of technology giant Nvidia Corporation NVDA. Here’s a look at how the trade compares to that of fellow Congress peer Nancy Pelosi, who sold early and missed out on huge profits.
What Happened: Semiconductor stock Nvidia has soared in valuation in 2023 with the stock hitting all-time highs after reporting quarterly financial results and guidance that came in higher than analysts’ estimates.
The increase in valuation led to Nvidia passing the one trillion market capitalization club.
Congressman Ro Khanna (D-CA) is one of the most active members of Congress when it comes to buying and selling stocks. Back in December 2022, Capitol Trades reported over 500 trades made by the congressman.
Khanna recently disclosed that he sold shares of Nvidia after the increased valuation. Khanna reported trades of Nvidia that were completed on May 25 and May 31, each valued at $1,000 to $15,000, as shared by CongressTrading.
Shares of Nvidia traded between $366.35 and $394.80 on May 25 and between $378.22 to $402.95 on May 31.
Nvidia shares traded between $298.06 and $302.10 on May 24 before it reported quarterly results. Shares opened for trading at $385.23 on May 25 after its earnings report.
While Khanna missed out on some potential additional profits holding shares of Nvidia until the current time, he fared better than another member of Congress who sold early and missed out on profits.
Related Link: Nvidia Recently Hit A $1 Trillion Market Cap, Which Stock Is Next To Join Club, Here's What Benzinga Users Said
Why It’s Important: Former Speaker of the House Nancy Pelosi is also one the most active stock traders in Congress, thanks to her husband venture capitalist Paul Pelosi. While many of the trades reported by Pelosi are done by her husband, they have been questioned given her role in Congress and potential of having access to insider information.
Pelosi and her husband previously announced holdings of 25,000 shares of Nvidia Corporation. The couple sold the shares, a move that came after public scrutiny over holding the stock.
In July 2022, the Pelosis reported a loss on the shares of Nvidia, listed in the filing as a loss of between $1 million to a loss of $5 million.
Pelosi faced public scrutiny over holding a position in Nvidia ahead of a vote on the CHIPS Act by Congress, which Pelosi publicly supported.
The CHIPS Act was seen as something that could directly benefit Nvidia.
Experts also questioned the way the Pelosis disclosed the trade. While the sale could have been done for several reasons, many thought that it was done due to public pressure and the way it was reported as a loss was meant to silence the controversy.
Nvidia shares fell after the Pelosis sold the position, which could have saved a potential loss of $753,250. Months later, Nvidia shares soared as being seen as a beneficiary of interest in artificial intelligence.
The 25,000 shares of Nvidia sold were reported at a realized price of $4,126,250. Based on a price of $430.78 for Nvidia today, the 25,000 shares would be valued at $10,769,500. The Pelosis missed out on a potential profit of over $6 million.
Khanna was previously mentioned by Benzinga as a member of Congress who could benefit from a push to ban TikTok while also holding shares of rivals of the social media company.
Analysts see Nvidia shares going higher based on interest in artificial intelligence and the company’s raised guidance.
NVDA Price Action: Nvidia shares hit new all-time highs of $430.78 on Thursday and are up 200% year-to-date in 2023.
Read Next: 10 Best Stock Traders In Congress In 2022 (Spoiler: Nancy Pelosi Isn't No. 1)
Photo: Shutterstock and Gage Skidmore on Flickr
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