Josh Gottheimer's Stock Trade Raises Questions Ahead of FDA Approval

Josh Gottheimer's Controversial Stock Purchase

On October 3, Representative Josh Gottheimer of New Jersey disclosed a stock buy in Crinetics Pharmaceuticals (NASDAQ: CRNX) a day before the FDA approval announcement for a new drug. This investment raises significant questions about the ethics of politician stock trading.

Stock Performance Post-Investment

At the time of his investment, CRNX shares were priced at $50.58. Following the announcement, the stock surged 11.66%, trading at $56.48, suggesting a potential profit for Gottheimer ranging from $116 to $1,749.

• Representative Gottheimer has a history of timing trades with stock performance.
• CRNX stock is receiving bullish ratings from analysts.

Ethics and Political Consequences of Stock Trading

This transaction has led to heightened scrutiny over politician stock trading, particularly as congressional members like Gottheimer seem to outperform average investors. While measures like the STOCK Act aim to address these issues, enforcement remains an uphill battle.

CRNX Analyst Outlook

Despite its previous low profile, wall street analysts view CRNX positively. With price targets averaging $71.50, there’s optimism about the stock's future performance as the company prepares for its earnings call on November 5. Ultimately, the ethics surrounding Gottheimer's singular stock investment versus a diversified portfolio remains a significant concern for many observers.