We're trimming a stock, raising our large cash position ahead of volatility
CNBC • • general
Key Points:
- Jim Cramer's Charitable Trust is selling 25 shares of Eaton (ETN) at approximately $397, reducing its holding to 225 shares and lowering the portfolio weight from 2.6% to 2.3%.
- This marks the fourth sale this week as the trust aims to increase its cash position to nearly 12%, anticipating continued market volatility ahead of the SpaceX IPO.
- Eaton's stock has risen about 26% this year, but recent uneven quarterly results and margin pressures have prompted a downgrade in rating from buy-equivalent 1 to 2, with plans to wait for a better price before adding shares again.
- The sale is part of a broader strategy to reduce exposure to semiconductors and AI infrastructure stocks, which may face short-term pullbacks as investors prepare for significant new stock supply.
- The trust expects to realize a gain of roughly 70% on Eaton shares purchased in December 2023, reflecting a profitable exit at current levels.