Solar Stock Purchased by McCaul is Up 35% This Week
Last month, Congressman Michael McCaul disclosed he invested in SolarEdge Technologies Inc (SEDG:US), which designs and sells solar products and services to residential, commercial, and industrial customers. Rep. McCaul spent between $15,000 - $50,000 on four trades involving SolarEdge stock in September, registered in the name of his spouse and children.
Mr. McCaul is an influential member of the Republican party who serves on the House Foreign Affairs Committee, along with the House Homeland Security Committee. His trades are closely watched given his influence on other lawmakers and overall popularity.
While McCaul’s timing hasn’t been perfect given that SEDG shares trade about 10% lower than his entry price, his decision to start investing in solar stocks is interesting. Republicans voted ‘no’ on the climate bill and are generally opposed to a faster transition from traditional to renewable sources of energy.
SolarEdge stock soared nearly 14% on Thursday to reflect the market’s optimism that the Federal Reserves are close to committing to a policy pivot after the CPI data for October showed prices are cooling. All in all, SolarEdge stock is up about 35% this week after a boost from earnings, which came in better-than-expected earlier this week.
SolarEdge said it has witnessed strong demand for its products and it expects this trend to continue, prompting Northland Capital Markets analysts to upgrade the stock. Shares have been especially boosted by the company’s projection that its margins will increase further in the fourth quarter, which is unusual in an environment of rising rates and costs.
It remains to be seen whether Congressman McCaul will continue to increase his exposure to the solar sector, and SolarEdge in particular, as shares trade sharply higher in recent months following the adoption of the Inflation Reduction Act (IRA).
