Questionable stock and options trades over the past several years by members of Congress have led to increased calls from the public and by several members of Congress to ban the buying and selling of stocks and options by elected officials.
A new disclosure of a profit from a penny stock by a congressman might not sit well with the public.
What Happened: Rep. Kevin Hern (R-OK) was one of several members of the U.S. House of Representatives who were nominated or interested in the Speaker of the House position after Kevin McCarthy was voted out of the role.
Hern was elected to the House in 2018 and served since then. The congressman has been a vocal supporter of former President Donald Trump and was one of the Republicans who attempted to overthrow the 2020 presidential election results.
The Oklahoma Republican representative is also an active stock trader, which may come from his business background. Hern has been the owner of several businesses and is a former franchisee of McDonald’s restaurants. A local paper once called Hern the McCongressman before he sold all of the McDonald’s franchised restaurants he owned.
A recent stock transaction by Hern could draw attention — and it wasn’t of McDonald’s.
Data from Quiver Quant shows that Hern recently sold shares of mortgage company Freddie Mac (OTC:FMCC).
The disclosure shows Hern sold $100,000 to $250,000 worth of Freddie Mac shares on Nov. 6. Data showed Freddie Mac shares trading between 64 cents and 67 cents on the day of the sale.
Data from Quiver Quant showed Hern bought $100,000 to $250,000 worth of Freddie Mac shares earlier this year on Jan. 30, in a trade that was disclosed publicly on Feb. 14. Shares of Freddie Mac traded between 45 cents and 47 cents on the day of the purchase.
Based on the prices at the time of the two transactions, Hern profited 42.2% to 48.9% on the trade.
Related Link: The 10 Best Stock Traders In Congress In 2022
Why It’s Important: Hern is allowed to buy and sell stocks and options as a member of Congress as long as he publicly discloses the transactions in a timely fashion.
Hern previously violated the STOCK Act failing to disclose transactions he made in 2021.
While most members of Congress buy and sell stocks and options of large companies, Hern’s latest transaction involves a well-known company, but…
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