Benzinga - by Chris Katje, Benzinga Staff Writer.
The trading activity of stocks and options by members of Congress continues to be highly scrutinized as potential conflicts of interest are highlighted.
A prominent senator recently disclosed several stock transactions, which are drawing attention on social media.
What Happened: No stranger to stock and options trading, Senator Tommy Tuberville (R-Ala.) recently disclosed several transactions made on Feb. 27.
The Senator disclosed buying $50,000 to $100,000 in shares of regional bank Southern States Bancshares (NASDAQ:SSBK), which has locations in Alabama and Georgia.
"Alabama Senator Tuberville reported buying stock in Alabama bank Southern States $SSBK on Friday afternoon. Also, the CEO of $SSBK Steve Whatley has donated thousands of dollars to ‘TUBERVILLE FOR SENATE.' Should this be allowed?" CongressTrading shared on X, formerly known as Twitter.
The bank has a market capitalization of $216 million, making this one of the smaller stocks traded by a member of Congress in 2024.
Tuberville also disclosed buying $50,000 to $100,000 in shares of Star Bulk Carriers Corp (NASDAQ:SBLK), which caught the attention of Quiver Quant, which tracks Congress trading activity.
"Just found something wild. Senator Tommy Tuberville just bought up to $100K of stock in a company called Star Bulk Carriers. Star Bulk Carriers specializes in shipping forestry products. Tuberville sits on the Senate Committee on Forestry," Quiver Quant tweeted.
Quiver Quant said that Tuberville also sits on the Senate Committee on Commodities.
"Note that $SBLK ships a variety of products, including iron ore, minerals and grain."
Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It's Important: Potential conflicts of interest in trades of stocks and options have previously been highlighted regarding Tuberville, particularly given his committee assignments.
Tuberville bought call options and put options on United States Steel Corporation (NYSE:X). With his appointment to the Senate Commodity Subcommittee, Tuberville is involved in overseeing the steel industry.
United States Steel is subject to a takeover attempt by Japanese company Nippon Steel, which has drawn backlash from members of Congress and President Joe Biden. With an active trading position, Tuberville could be influenced in deciding whether Congress should block or approve the buyout.
Tuberville buying shares of small-cap biotech company Humacyte Inc (NASDAQ:HUMA) drew red flags from investors. The company has been working with Ukraine on humanitarian efforts. Tuberville's position on the Senate Armed Services Committee could present a conflict of interest with the trade. The senator recently bought more Humacyte shares.
The senator also purchased shares of Intel Corporation (NASDAQ:INTC) several days before the CHIPS Act was signed into law by President Biden. The CHIPS Act gave $50 billion in funding to microchip companies, including Intel.
“You voted for Senator Tuberville to represent you, instead he's trading cattle, wheat and corn contracts. Btw he sits on the Senate Agriculture Committee,” CongressTrading tweeted in September 2021.
A previous report from the New York Times highlighted Tuberville buying or selling stock and options in 17 companies that had business in front of Senate committees on which he served.
Representatives for Tuberville told the Montgomery Advertiser previously that he has financial advisors who manage his portfolio.
While some members of Congress have supported a ban on stock and options trading, Tuberville has opposed such a measure in the past, calling it "ridiculous."
"I think it would really cut back on the amount of people that would want to come up here and serve, I really do. We don't need that," Tuberville told The Independent in 2022.
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