Jim Cramer's Charitable Trust sold 25 shares of Eaton Corporation (ETN) at approximately $397 per share, reducing its position to 225 shares and lowering the portfolio weight from 2.6% to 2.3%. The sale brings the trust's cash position close to 12% in preparation for expected market volatility ahead of the SpaceX IPO. This is the fourth sale of the week; earlier, positions in Goldman Sachs and Qnity Electronics were trimmed on Monday, and Arm Holdings was reduced on Tuesday.
Context
Eaton shares have risen about 26% year-to-date. The trim is intended to reduce exposure to semiconductor and AI infrastructure stocks, which the trust views as vulnerable to a short-term pullback due to upcoming stock supply. Additionally, Eaton has shown uneven quarterly results: strong orders from data center buildout but margin pressure from capacity expansions in its Electrical Americas segment.
Rating Change
The trust has downgraded its rating on Eaton from 1 (buy equivalent) to 2, and plans to wait for a more attractive price to add again. The sale realizes a gain of approximately 70% on shares purchased in December 2023.