Benzinga - by Chris Katje, Benzinga Staff Writer.
Over the weekend, Iran launched a drone attack on Israel, which came in response to an airstrike of an Iranian embassy in Syria.
The attack is the latest in an escalation of tensions in the Middle East, which could lead to further involvement from the U.S. and potential funding for defense companies.
What Happened: The trading activity of members of Congress has come under an increased spotlight in recent years, due to potential conflicts of interest.
Congress members who own stocks and options in defense companies could be flagged for conflict of interest as potential votes and decisions could be coming on how the U.S. will react to the attack on Israel by Iran.
Utilizing the Benzinga government trades page, investors can find which members of Congress have been buying up shares of defense stocks like Lockheed Martin Corp (NYSE:LMT), RTX Corp (NYSE:RTX), Northrop Grumman Corp (NYSE:NOC) and General Dynamics Corp (NYSE:GD).
Rep. Kevin Hern (R-Okla.) bought $1,000 to $15,000 worth of Lockheed Martin shares on March 29. The member of Congress also bought shares of Lockheed Martin in December 2023. Hern also bought shares of RTX Corporation in December and March with each purchase listed at $1,000 to $15,000.
Rep. Kathy Manning (D-N.C.) bought $1,000 to $15,000 worth of Lockheed Martin shares in December and January in two separate trades.
Sen. Markwayne Mullin (R-Okla.) bought $1,000 to $15,000 worth of shares of RTX Corporation in October 2023.
Rep. Josh Gottheimer (D-N.J.) bought $15,000 to $50,000 worth of shares of Northrop Grumman in December 2023.
The last listed purchase of General Dynamics stock was by Rep. Michael Guest (R-Miss.) in August 2023 with a transaction totaling $1,000 to $15,000.
According to a post from Unusual Whales, which tracks the trading activity of Congress members, these are the five members of Congress who have the most money invested in defense stocks.
Why It's Important: Defense stocks have been in the spotlight in recent years with the invasion of Ukraine by Russia and the Middle East conflict in Israel leading to increased spending on weapons and the U.S. providing funding and weapons in some cases to its allies.
Benzinga previously reported there were several members of Congress who benefitted by owning shares of energy stocks and defense stocks before the invasion of Ukraine by Russia.
Members of Congress could be tasked with voting for additional funding for Israel in the wake of the attack by Iran. Voting to provide additional funding and weapons to Israel could benefit the defense stocks members of Congress currently own.
In some cases, members of Congress who own defense stocks may have a greater conflict of interest due to committee roles.
Mullin serves on the Armed Services committee.
Manning previously bought Lockheed Martin shares before publicly calling to "hold Iran accountable."
Members of Congress are allowed to buy and sell stocks and options as long as they are properly disclosed, which includes being able to buy defense stocks before they vote on potential funding for more international conflicts.
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