2 Key Members of Congress Recently Bought SpaceX Stock. Should You Buy It Too?

Members of the U.S. Congress buying a stock usually isn't a big deal. It happens all the time. However, some transactions by politicians are noteworthy -- especially for investors.

That's the case with two recent transactions involving Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX. There's bipartisan interest in SpaceX, with Rep. Dan Meuser, R-Penn., and Rep. Gil Cisneros, D-Calif., becoming the first members of Congress known to have disclosed investments in the space stock. Is this a bullish signal for other investors thinking about buying SpaceX?

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Not just any congressional trades

Rep. Meuser disclosed a purchase of SpaceX stock on June 15, 2026, only three days after the company's record-setting IPO. The congressman's regulatory filing revealed that his dependent child bought between $15,001 and $50,000 of the stock. Rep. Cisneros bought between $1,001 and $15,000 of SpaceX shares on June 18.

There are no yellow flags with either of these transactions, by the way. Both members of Congress complied with disclosure requirements. Neither has been accused of trading on information that isn't public or violating any law. Cisneros issued a statement to CNBC emphasizing that he doesn't personally manage his investments. The California Democrat said that he and his wife use "outside financial advisors who have a fiduciary responsibility to maintain a diverse portfolio."

The interesting thing about these two representatives, though, is their committee assignments. Meuser is on the House Financial Services Committee, which oversees securities and exchanges. Cisneros serves on the House Armed Services Committee, which has jurisdiction over the Department of Defense.

SpaceX has around $22 billion in contracts with U.S. government, with the Defense Department ranking as one of its fastest-growing government customers. NASA is the company's largest federal customer, with roughly $15 billion in contracts.

What history shows

In 2004, Alan Ziobrowski, Ping Cheng, James W. Boyd, and Brigitte J. Ziobrowski published a detailed analysis of stock investments made by U.S. Senators between 1993 and 1998. They found that a portfolio that copied senators' buy transactions beat the market by 85 basis points per month, while a portfolio that mimicked their sales beat the market by 12 basis points per month.

Importantly, though, that study was based on data before the implementation of the Stop Trading on Congressional Knowledge (STOCK) Act of 2012. This legislation banned members of Congress, as well as the President, Vice President, and all federal employees, from using nonpublic information to which they have access through their official positions for personal financial profit. The STOCK Act also mandated financial disclosures.

You'll sometimes see reports about individual members of Congress achieving outsize returns from their investments. However, a 2022 analysis by William Belmont, Bruce Sacerdote, Ranjan Sehgal, and Ian Van Hoek concluded that "House and Senator stock returns are consistent with random stock picking."

Similarly, Vishaal Baulkarna and Pawan Jain published research in 2025 analyzing two exchange-traded funds (ETFs) that sought to replicate trades of members of Congress. They determined that "neither ETF significantly outperforms the market on a risk-adjusted basis."

The Unusual Whales 2025 Congress Trading Report found that only 32.2% of congressional portfolios outperformed the S&P 500 (SNPINDEX: ^GSPC) last year. The reported stated, "This success rate effectively mirrors the professional financial world." The conclusion: "In 2025, Congress proved to be no better than the average money manager."

Not necessarily a bullish signal

The bottom line for investors considering SpaceX stock is that congressional buys aren't necessarily a bullish signal. At least on an overall basis, members of Congress haven't consistently beaten the market with their stock picks. Buying SpaceX just because two representatives did, therefore, probably isn't a smart move.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.