Jim Cramer's Charitable Trust Sells Dover Shares
Quick Look
- Jim Cramer's Charitable Trust is selling 200 shares of Dover (DOV) at approximately $214 per share, reducing its portfolio weighting to 2%.
- The move aims to raise cash for future investments in FedEx and FedEx Freight, despite Dover's AI-related businesses.
- The trust expects to realize a 20% gain on the Dover shares purchased in 2024.
AI-generated summary
We are selling 200 shares of Dover at roughly $214.
Following the trade, Jim Cramer's Charitable Trust will own 360 shares of DOV, decreasing its weighting in the portfolio to about 2% from 3%.
There's a big rotation happening in the market on Thursday, with investors selling their AI darlings and moving into groups that have been left behind this year.
We are going against this rotation by trimming a position that's been stuck in no man's land lately: Dover .
Shares have fallen roughly 5% since the start of the Iran war in late February and have yet to stage a meaningful breakout, even as orders surged in the first quarter .
The company had businesses riding the AI wave, specifically in liquid cooling for data centers and in spending to update the electric grid.
But it also has a bunch of other, less flashy businesses serving markets like can-making and vehicle repair lifts.
Getting bored is never a good reason to sell a stock, but investments need catalysts.
We've been waiting for the company to put its strong cash position to work through acquisitions and portfolio moves that could improve its growth outlook.
Until management takes action, the stock may remain stuck in the mud.
But with shares up 1.5% this week, we see an opportunity to raise cash ahead of the planned purchase of two of our 1-rated industrials, FedEx and FedEx Freight .
This cash gives us some more wiggle room to gradually build those positions up on post-breakup volatility.
From this sale, we will realize an average gain of roughly 20% on stock purchased in 2024.
(See here for a full list of the stocks in Jim Cramer's Charitable Trust.)
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