This could be the worst-timed insider trade everInvestors are accustomed to seeing insiders make profitable trades, especially among US politicians. However, there are times when these insiders make mistakes and lose a significant portion of their investment in a short period.
This is precisely what happened to Rep. Michael McCaul. On April 4 and 5, he purchased $350,000 worth of Meta (NASDAQ: META) stock before voting ‘yes’ on the TikTok ban bill.
Unfortunately for him, his trade didn’t pan out as expected, at least not in the short term. META stock dropped by 3.41% from his purchase until the last market closing.
I hope many of his colleagues did the same!