Congressman Buddy Carter sells up to $1 million in Ameris Bancorp stock before earnings report: What’s behind the move?

Congressman Buddy Carter of Georgia’s 1st Congressional District recently made headlines with a significant stock transaction that has stirred speculation in the financial community. 

Just days before Ameris Bancorp was set to release its earnings report, Carter disclosed the sale of between $400,000 and $1,000,000 worth of the bank’s shares. 

This move has prompted questions about whether Carter had inside information regarding the bank’s financial performance.

Ameris Bancorp earnings report surprises analysts

A few hours following Carter’s disclosure, Ameris Bancorp announced its quarterly earnings, reporting an earnings per share (EPS) of $1.17. 

This figure exceeded analysts’ expectations of $1.15 and marked a significant improvement from last year’s EPS of $0.91. 

Despite a downward revision in earnings estimates prior to the announcement, the better-than-expected results led to a 3% increase in the bank’s stock price.

Carter’s timing raises intriguing questions. Had he held onto his shares, he might have benefited from the post-earnings spike. 

However, given that Ameris Bancorp is thinly traded, Carter’s decision to sell could have been motivated by a desire to avoid risk rather than insider knowledge.

A history of controversial transactions

This recent transaction is not the first instance of Congressman Carter attracting scrutiny over financial dealings. 

In 2014, he faced criticism for sponsoring a bill that increased reimbursement rates for pharmacies in Georgia. 

At the time, Carter owned three pharmacies, leading to accusations of a conflict of interest. 

Although he acknowledged the ethical concerns, the controversy did not result in significant consequences.

Similarly, in 2018, Carter purchased a property in Camden County, Georgia, which he claimed was for personal use. 

Shortly after, he petitioned the FAA to issue a launch site operator’s license for Camden, a move that subsequently boosted property values in the area, including his own. 

Carter sold this property in 2023 for more than double its purchase price, a transaction that further fueled allegations of using his position for financial gain.

Political transactions and ethical concerns

Carter’s recent stock sale adds to a pattern of questionable transactions by politicians, particularly those with access to sensitive information. 

Such cases have been notably observed during periods of economic instability, such as the recent US local bank crisis and the onset of the Ukraine conflict. 

Politicians with roles on influential committees have been implicated in trading stocks of companies directly affected by these events, raising concerns about the integrity of their transactions.

As investors in Ameris Bancorp watch closely, Carter’s sale serves as a reminder of the need for vigilance in the face of potential insider knowledge and ethical considerations. While there is no concrete evidence linking his stock sale to inside information, the timing and history of such transactions invite scrutiny and underscore the importance of transparency in financial dealings.