We're selling 50 shares of DuPont at roughly $147 each. Following Tuesday's trade, Jim Cramer's Charitable Trust will 400 shares of DD, reducing its weighting in the portfolio to about 1.5% from 1.7%. DuPont shares are moving higher after the company posted a better-than-expected third quarter, with organic sales increasing 5% year over year and adjusted earnings per share (EPS) of $2.09 handily beating the consensus estimate of $1.87, according to LSEG. The company's sales growth was broad-based, with Healthcare up mid-single digits, Water up low single digits, Building Technologies up mid-single digits, and Industrial Technology up mid-single digits. Water would have been a couple of points better if not for Middle East disruptions, which was a concern of ours on Monday when we trimmed the position. The company also raised its full-year guidance and provided an upbeat fourth-quarter outlook. Shares are reacting positively to the print, gaining 4% to around $147. At one point, the stock did trade as high as $154. DD YTD mountain DuPont YTD We think the company continues to execute well on its post-separation initiatives,…
We're trimming some more off a stock that's enjoying nice post-earnings gains
In short
The transaction capitalized on DuPont shares climbing 4% after the company topped third-quarter earnings expectations and raised its full-year guidance. While the firm displayed broad-based segment growth and continued execution on its post-separation initiatives, the trust decided to secure profits following the rally. The sale leaves the Charitable Trust with a remaining holding of 400 shares in the company.
Key points
- Strong third-quarter earnings and an upgraded full-year outlook drove DuPont shares up 4%…: Strong third-quarter earnings and an upgraded full-year outlook drove DuPont shares up 4% with intraday highs reaching $154.
- The portfolio trimmed its position from a 1.7% weighting to approximately 1.5% to bank ga…: The portfolio trimmed its position from a 1.7% weighting to approximately 1.5% to bank gains after the post-earnings surge.
- Management remains constructive on DuPont's free cash flow and stock buybacks but cited u…: Management remains constructive on DuPont's free cash flow and stock buybacks but cited uncertainty regarding the stock's next catalyst.