Recently, American lawmakers have come under increasing scrutiny for their activities in the stock market. Many elected officials have gained attention for making well-timed trades or investing in companies that fall under their oversight. Senator Tina Smith became a focal point of controversy in November 2023 when she publicly disclosed buying shares of a relatively small medical firm named Artivion (NYSE: AORT), amounting to $200,000 in total investments.
The timing of Smith’s purchases raised eyebrows, as the value of AORT stock surged shortly after her transactions. At the time of her first purchase on November 10, each Artivion share was priced at $13.33, which increased to $14.09 by her second buy on November 16. Subsequently, by November 24, the stock had climbed to nearly $18, and currently stands significantly higher at $25.65, marking a substantial gain.
Senator Smith, who serves on the Senate Committees on Health, realized profits of approximately $93,000 from her initial trade and about $82,000 from the second, achieving an overall return of 87.5%.
In addition to her Artivion investments, Smith also allocated up to $250,000 towards purchasing shares in another small medical company, Tactile Systems (NASDAQ: TCMD), during the same period. Unlike Artivion, TCMD has not performed as well in the market, seeing an increase of only about $1.32 per share since Smith’s investment on November 8. This contrast suggests that despite suspicions, lawmakers may not always benefit from insider knowledge, or that such information does not guarantee profitable outcomes.
These transactions highlight ongoing concerns about the intersection of political influence and financial activities, sparking debates on transparency and ethical considerations among elected officials.
