Here's what to make of some key trades from Nancy Pelosi
ByChris MacDonald, InvestorPlace ContributorJul 31, 2024, 3:23 pm EDT
- Nancy Pelosi has become among the most closely-watched politicians in terms of her stock trades.
- The congresswoman recently filed a transaction report denoting a sale of Microsoft(MSFT) stock and a purchase ofNvidia(NVDA) stock.
- Let’s dive into what to make of these transactions and what they may mean for investors.
Microsoft (NASDAQ:MSFT) remains one of the most closely-watched stocks in the market, for good reason. On any given day, MSFT stock can be the world’s largest company, depending on how it performs relative to other mega-cap tech stocks. In today’s market, Microsoft is certainly not feeling the love other large-cap tech names are, with MSFT stock declining about 1% in early afternoon trading.
Some investors may be taking cues from congresswoman Nancy Pelosi, who disclosed that shesold 5,000 sharesof MSFT stock in a periodic transaction form released today. In addition to trimming this position, the high-ranking political figurealso noted a purchase of 10,000 shares of Nvidia (NASDAQ:NVDA) stock in a transaction worth between $1 million and $5 million.
While many investors may not be the whales Pelosi and her husband have turned out to be, the market does take signals from how insiders trade these stocks. Let’s dive into what to make of these moves and what this could mean for Microsoft moving forward.
MSFT Stock Lower on Pelosi Sale
Much of the scrutiny that has come for high-ranking politicians buying and selling individual stocks is because these are the people who regulate the sectors in which these companies operate. With insider knowledge of what regulations may be pushed, it’s entirely possible to trade on insider information. Indeed, many point to a politician’s career path as one that may be much more attuned to trading for this reason alone.
So, when Nancy Pelosi (who makes numerous trades that are possible to follow due to regulatory filings) trades a stock like Microsoft, many investors take notice. While today’s decline can be hard to tie back to this move, it’s one that can certainly send signals to the market. Today, investors certainly seem to be pricing in some of these signals due to the size of this trade and what it may mean for Pelosi and her husband personally.
I’m not going to suggest this trade may be meaningful, and it may indeed be the wrong time to sell. It’s hard to predict the future, even if you have somewhat of a regulatory crystal ball. But for now, many in the market appear to be taking profits as a rotation builds from mega-cap tech stocks to smaller-cap names. This is just one of the factors that many may rely on as a reason to go along with this trade.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
On the date of publication, the responsible editor held a LONG position in NVDA.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
Article printed from InvestorPlace Media, https://investorplace.com/2024/07/nancy-pelosi-sold-5000-shares-of-microsoft-msft-stock/.
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