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Cybersecurity company CrowdStrike Holdings (NASDAQ:CRWD) suffered a double-digit share loss Friday after a company update impacted Microsoft Corporation (NASDAQ:MSFT) products and led to an outage across several major sectors around the world.
Several members of Congress own shares of CrowdStrike, including two prominent figures.
What Happened: The Microsoft outage led to massive disruptions Friday. The disruption also led to CrowdStrike shares falling 11% as investors weighed the potential short-term and long-term impact.
CrowdStrike shares closed Friday at $303.96, down $38.09. During the day, shares traded between $290.10 and $316.75, as seen in the chart from Benzinga Pro below.
Among the many holders of CrowdStrike shares are Representatives Nancy Pelosi (D-Calif.) and Marjorie Taylor Greene (R-Ga.).
Greene recently disclosed her purchase of $1,000 to $15,000 worth of CrowdStrike shares in June. The purchase was made on June 24, as reported by Benzinga's Government Trades page.
Based on a price of $374.00 to $381.76 on June 24, Greene may have bought between 2.62 and 40.11 shares of CrowdStrike.
This means Greene potentially lost anywhere between $99.80 and $1,527.79 on Friday.
Pelosi, on the other hand, suffered a much larger loss on Friday. The former House speaker bought 5,000 shares valued at $500,000 to $1 million back on Sept. 3, 2020. Pelosi has not exited the position, according to filings.
On Friday, Pelosi lost $190,450 from her stake in CrowdStrike. The speaker bought the shares back in 2020 when they were selling for around $129.95. The congresswoman still is up over 130% since taking the position.
Read Also: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It's Important: Although Greene and Pelosi both investing in the same stock made headlines, Greene’s recent purchase raised some red flags. It turns out that Greene, a Donald Trump ally, is a member of the Subcommittee on Cybersecurity, Information Technology, and Government Innovation, which operates under the House Committee on Oversight and Accountability.
As a member of the subcommittee, Greene could have direct knowledge of government contracts, upcoming funding for the cybersecurity sector and any details on breaches that are worrisome to the country’s government.
The increased interest in Congress trading has led to several ETFs being created. The Series Portfolios Trust Unusual Whales Subversive Republican Trading ETF (BATS:KRUZ) and Series Portfolios Trust Unusual Whales Subversive Democratic Trading ETF (BATS:NANC) track the activity of Republican and Democratic members of Congress respectively. An effort to ban members of Congress from trading could work its way through Congress soon.
A new ETF is also on the way from Tuttle Capital and will combine trades from both parties and base holdings on the trading accuracy and performance of members of Congress and their committee assignments.
CRWD Price Action: CrowdStrike shares closed at $304.96 Friday versus a 52-week trading range of $140.52 to $398.33. CrowdStrike shares are up 99% over the last year and up 19.4% year-to-date in 2024, as seen in the Benzinga Pro chart below.
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Photo: Shutterstock
