This Congressman Continues to Bet Big on Dow Stock
Shares of Dow Inc (DOW:US) are outperforming the S&P 500 this year despite a pullback. Shares of the chemical giant are down just a little under 10% year-to-date, outperforming the embattled S&P 500, which is trading almost 20% lower YTD.
Dow shares jumped in mid-October when the chemical business reported better-than-expected results for its third quarter. Dow posted operating earnings per share of $1.11 on revenue of $14.12 billion, beating the average analyst estimate for EPS of $1.08 on revenue of $13.24 billion.
The operational EBITDA fell as much as 48% to $1.86 billion with the company blaming “significant macroeconomic headwinds” for the plunge. Given that it expects “the macro environment to remain dynamic," Dow said it aims to “deliver more than $1 billion in cost savings in 2023 while we continue to leverage our scale, geographic diversity and feedstock and derivative flexibility," according to CEO Jim Fitterling.
The latest earnings report has helped Dow stock to outperform with shares up over 13% since the earnings announcement.
In the meantime, Rep. Michael McCaul has continued to add to his long Dow position, as per stock trackers. The Congressman from Texas initially bought DOW stock on October 05, when shares closed at $46.06. Rep. McCaul reported that two trades were made on this day, one valued at $250,000 - $500,000 and the second one smaller in size - $50,000 to $100,000.
The overall exposure to Dow stock obviously wasn’t enough for McCaul so he decided to buy more Dow shares. The Congressman was buying on November 09 and 15, when the stock closed at $47.68 and $51.60, respectively. Overall, he disclosed four transactions: two worth between $250,000 - $500,000 and two worth between $50,000 - $100,000.
The Republican’s Investing in Dow doesn’t come as a surprise given that he most often trades the Industrial sector.
