Benzinga - by Chris Katje, Benzinga Staff Writer.
Meme stocks like GameStop Corporation (NYSE:GME) and AMC Entertainment Holdings (NYSE:AMC) are trading higher on the week echoing a similar event that happened in 2021.
While several members in Congress actively buy and sell stocks, most stayed away from meme stocks in recent years, although one member of Congress traded both GameStop and AMC in the last three years.
What Happened: The stock and options trading activity by members of Congress has sparked controversy in recent years with the potential for conflicts of interest and inside information obtained ahead of trades that are made.
One member of Congress traded in GameStop and AMC, but these trades occurred some time ago, likely minimizing any potential benefit from Roaring Kitty’s social media activity this week.
Rep. Michael Garcia (R-Calif.) bought $1,000 to $15,000 worth of GameStop shares according to a filing made on July 13, 2021. The transaction was listed with a trading date of June 21, 2021.
GameStop shares traded at a split-adjusted range of $49.25 to $54.60 on June 21, 2021. Based on this and a premarket price of $35.18 for GameStop on Thursday, the Congressman would be down 28.6% to 35.6% on his trade.
A filing has not been made that the stock was ever sold, so it is believed that Garcia still owns the shares.
Along with trading GameStop shares, Garcia also made a trade in AMC in 2021.
The Congressman reported selling $1,000 to $15,000 worth of AMC shares on Aug. 23, 2022. The transaction took place on Aug. 12, 2022.
AMC shares traded at a split-adjusted range of $239.60 to $272.00 on Aug. 12, 2022. Based on a trading price of $5.53 at the time of writing, the Congressman made a smart trade. AMC shares are down 97.7% to 98.0% from the day of Garcia's trade.
Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It's Important: Members of Congress are currently free to buy and sell stocks and options as long as they properly disclose their trades.
Garcia has not been especially active in trades in recent years. His most recent reported trades have been buying government treasuries, according to Quiver Quant.
The Congressman also sold shares of Tesla Inc (NASDAQ:TSLA) valued at $65,000 to $150,000 in June 2023 based on two sale filings. Garcia bought shares of Tesla multiple times in 2021 and 2022.
He’s is the only member of Congress to trade either GameStop or AMC in the last three years according to filings.
Former Senator Pat Toomey previously disclosed that his son bought $1,000 to $15,000 in GameStop stock and sold it the next day. The sale happened around the time the senator said the stock's rising value had "all of the characteristics of a bubble."
That transaction drew attention from investors given the timing.
Another transaction back in 2021 that caught the attention of retail traders was Rep. Kathy Manning (D-N.C.) investing $500,000 to $1 million in hedge fund Melvin Capital. The hedge fund was one of the key players in the GameStop short squeeze as it lost millions betting against the video game retailer.
Melvin Capital dissolved in June 2022 and returned any remaining funds to investors. It is unknow if Manning made money or received anything back on the trade. A member of Congress investing in the company actively betting against retail traders didn't go over well at the time.
Read Next: 5 Ways The GameStop, Meme Stocks Rally Could Fizzle: Stock Offerings, Boredom And More
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