We are selling 70 shares of Dupont at roughly $76.34. Following the trade, Jim Cramer’s Charitable Trust will own 800 shares of DD, decreasing its weighting to 1.93% from 2.09%. DuPont has climbed nearly 14% since we bought 70 shares in February at around $67 , and we are selling the same amount of stock Wednesday. When we made the purchase back then, DuPont shares were trying to bounce back from their January plunge , which came after the chemical maker issued weak guidance for 2024. The company took down numbers significantly due to channel inventory destocking within its industrial business and weak demand in China. Since then, DuPont’s stock has worked its way higher and made a full recovery on upbeat commentary around order growth, which can be a leading indicator of future revenues. At a Barclays investor confidence in February, CEO Ed Breen said the company’s year-to-date orders were up low single digits, giving us more confidence in a recovery in the second half of the year. DD YTD mountain DuPont’s year-to-date stock performance. We continue to think better times are ahead for Dupont as the electronics industry embarks on a multiyear recovery. The company’s exposure to artificial intelligence spending through its semiconductor business should further support that growth. In addition, the stock’s valuation is still very reasonable as it trades at a discount to its pureplay electronic materials and water peers. Despite these positive factors, we wonder whether the stock, which is about $2 off from its 52-week high, may have gotten ahead of the inventory destocking. We’re trimming our position in case that has happened and downgrading our rating to a 2, meaning we’d wait for a pullback before buying more. From this sale, we’ll realize a small loss of about 2% on stock purchased in August 2023. (Jim Cramer’s Charitable Trust is long DD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
