Congressman Sells Boeing Stock Day Before DOJ Investigation: Why The Trade From Top Trader Is Drawing Scrutiny
What Happened: The timing of trades made by members of Congress can often alarm experts who follow their trading activity, including buying defense and oil stocks before supporting Ukraine’s effort against Russia.
This time, it was the sale of shares and notes of The Boeing Company (NYSE:BA) that caught the attention of
on Twitter.
According to the Twitter account, Representative William Keating (D-Mass.) sold $1,000 to $15,000 in Boeing shares on Feb. 28. The Congressman also sold Boeing corporate notes valued at $15,000 to $65,000 in Boeing.
“Congressman Keating sold Boeing stock the same day/day before it was reported that DOJ (Department of Justice) was investigating Boeing,” Congresstrading tweeted.
The account said that the Department of Justice should investigate the trade and see if it was made based on “non-public information.”
As Congresstrading points out, Keating sits on the Armed Services Committee. The Armed Services Committee and Department of Justice.
Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It’s Important: The Department of Justice announced an investigation into Boeing on Feb. 29, which adds to the list of agencies aimed at the airplane manufacturer.
The Federal Aviation Administration (FAA) is also looking into recent mishaps from Boeing, which include a door plug blowout on a 737 flown by Alaska Air Group in January.
Inspections by the FAA since have shown audit failures by Boeing and airlines operating Boeing aircraft.
Shares of Boeing have fallen 29% year-to-date in 2024.
Boeing shares traded between $200.18 to $208.10 on Feb. 28, the day of Keating’s sale.
With the current share price of $184.52, Boeing shares are down 7.8% to 11.3% since the time of Keating’s sale. This means the Representative could have save himself from future losses on the position.
Keating was named the sixth best trading member of Congress in 2022 in an UnusualWhales report that analyzed the trading activity of members of Congress.
Boeing shares could struggle until the results of investigations and lawsuits from passengers become more clear.
