Georgia’s Representative, Richard W. Allen, has a long history of dabbling in many notable stocks. Currently seated on the Agriculture and Education & Labor Committees, Allen was elected to the 114th Congress, as well as the two succeeding ones. According to CapitolTrades, Allen has earned his place among politicians who reported their trades way past the 45-day mark set by the STOCK act in 2012
But this discussion is about one of Allen’s more swiftly reported trades: his sale of PayPal Holdings Inc. (NASDAQ: PYPL) in October.
Allen sold 5 to 62 shares of $PYPL on October 22, 2021. The stock’s price at the time was $240 and cost him roughly in the range of $1,001 to $15,000. He bought $PYPL on February 10, 2021, earlier this year at a price of $283 per share.
Bearish on PayPal
$PYPL stock took a dip of almost 15% since Allen’s sale. A recent news article stated that this dip could be attributed to the lackluster revenue report unveiled by PayPal for the fiscal year 2022. Another source hinted that the real decline began soon after it was announced that PayPal was exploring a billion-dollar deal with Pinterest Inc. (NYSE: PINS).
The CEO of PayPal however stated that the company wasn’t looking to make any big deals just yet. The financial technology company released a forecasted revenues report that was lower than NASDAQ’s projected revenues. This of course left a sour impression on investors.
To add to this, we are now heading towards a world where eBay will function on its own payment system, and not on PayPal.
Allen’s Trading Practices
Republican Allen purchased $PYPL at the beginning of 2021, several months before the stock scored its peak price of $308.53 on July 23, 2021, this year. Like most politicians, Allen is still holding on to the more popular stocks of the year like Alphabet Inc. (NASDAQ: GOOGL) and Walt Disney Co. (NYSE: DIS). His portfolio at present is largely populated with shares from Industrials and Tech companies.
$PYPL’s sale was a loss for Allen. But if the stock continues to take much bigger dives in the coming days, then it could give his transaction a whole new meaning.