Follow the money and stock purchases by members of Congress

The STOCK Act of 2012 was supposed to stop insider trading by members of Congress, but let’s be honest. The STOCK Act can’t really stop members of Congress from trading on inside knowledge; are able to obtain it, which will influence investment decisions. What the act accomplished was shed light on what members of Congress are buying and selling, which can be a treasure trove of information for investors. Today we’ll look at the three most purchased stocks by members of Congress in February and see if they might be a good investment for their constituencies.

Nancy Pelosi buys Palo Alto Networks

Rep. Nancy Pelosi (D-CA) bought it Palo Alto Networks NASDAQ: PANW in February not once but twice, which is a significant indicator. The first purchase occurred before the fourth-quarter release, the second after, so she and her investment advisors saw the post-release dip as a buying opportunity and a time to capitalize on the position. Her first purchase, between $500,000 and $1 million, lost 27% after release, so it took courage to double the position.

The good news for you and your constituency is that PANW stock is making a solid recovery. The 27% share price implosion was a knee-jerk reaction to a strategic decision that will generate long-term value for shareholders. Palo Alto Networks will offer free or reduced services to attract new customers. The takeaway from the report is that the business is solid, growth is still in the double digits, and the cash flow and balance sheet are strong enough to weather the brief disruption. Analysts have predicted that the impact on this technology stock will last twelve to eighteen months.

The Palo Alto market was sized correctly thanks to the change in strategy. The news triggered a series of analyst downgrades that helped the stock price implode, but some analysts raised their targets and the rebound brought the market in line with the consensus. Investors should expect volatility, but Palo Alto Networks’ stock price will recover. The recovery could gain momentum by the end of the year if the change bears fruit.

Victoria Spartz buys Simon Property Group

Rep. Victoria Spartz (R-IN) bought it Simon real estate group NYSE: GSP twice in February, extending a trend that began last year. Ms. Spartz has only been buying SPG shares since mid-2021 and has built a strong position. Reasons she may have focused on this company include its position as a REIT and its 5% dividend yield; the stock’s performance has been lukewarm over the same period; however, it is gaining ground.

One of the attractions of SPG shares is their value. It is considered cheap among REITs and produces solid cash flows. The company recently announced a new $2 billion share buyback program, worth about 4% of market capitalization, and the dividend is worth another 5%. Recent results include accelerating top-line growth and bottom-line strength. Eight analysts rate SPG a Moderate Buy consensus and support the market with upward price target revisions.

Kevin Hearn buys JPMorgan Chase

Kevin Hearn bought JP Morgan Chase New York Stock Exchange: JPM only once in the last 30 days, but don’t read too much into it. Mr Hearn bought three more shares on the same day and has a history of active buying. His stats include an average of 100 trades per year across 121 companies, and most of the time he buys. His most recent sales are Vuzix NASDAQ: VUZI AND Exact sciences NASDAQ: ESAS. Vuzix is ​​an augmented reality game headed into penny-stock territory; Exact Sciences is also a declining cancer screening and diagnostics company. Both stocks have a Moderate Buy rating from analysts and have significant upside potential.

JPMorgan shares are trending higher after a solid earnings report revealing that NII is still flowing strongly. Since the FOMC is not expected to cut rates anytime soon, the NII should continue to have a positive impact on results through mid-year. Analysts rate it a Moderate Buy, leading the market higher on revisions.

Before you consider Palo Alto Networks, you’ll want to hear this.

MarketBeat tracks daily Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and Palo Alto Networks wasn’t on the list.

While Palo Alto Networks currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here