Jim Cramer trust trims TJX stake, adds Kimberly-Clark and Constellation Brands

Traders Union
All News
Stocks
Cramer trust trims TJX stake

Highlights

Jim Cramer's Charitable Trust sold 475 TJX shares at $135, reducing weighting to 1.8%, while adding to Kimberly-Clark and Constellation Brands ahead of TJX earnings.
Gordon Haskett downgraded TJX to hold with a $130 price target due to competitive pressure from Ross Stores and execution issues in Marmaxx.
Kimberly-Clark's position rises to 2.5% of the trust after recent better-than-feared results and Kenvue deal, while Constellation Brands benefits from stronger beer sales and policy tailwinds.

Portfolio changes before earnings

As reported by CNBC Investing, Jim Cramer's Charitable Trust is making three trades on Friday, selling 475 shares of TJX Companies at about $135, buying 300 shares of Kimberly-Clark at about $108, and buying 220 shares of Constellation Brands at about $145.

After the transactions, the trust holds 500 shares of TJX, cutting the stock's portfolio weighting to about 1.8% from 3.4%. It raises its Kimberly-Clark position to 900 shares, lifting that weighting to about 2.5% from 1.65%, and increases its Constellation Brands stake to 490 shares, bringing its weighting to 1.8% from 1%.

The repositioning comes ahead of TJX earnings due next Wednesday. The trust says it wants to avoid carrying too much exposure into the report after a strong rally in the stock and plans to realize an average gain of about 113% on shares bought in August 2022 and March 2023.

Downgrade drives consumer exposure shift

Gordon Haskett downgraded TJX to hold on Friday with a $130 price target, citing continued competitive pressure from Ross Stores and lingering execution issues at Marmaxx, the company's largest segment, which includes TJ Maxx and Marshalls. Those problems weighed on second-quarter results and add to concern that Marmaxx could post another disappointing quarter.

The trust says Ross is continuing to take share from off-price rivals, pointing to Gordon Haskett analysis showing traffic trends at a subset of co-located Ross Stores and Marmaxx sites still favor Ross. The same analysis suggests Marmaxx's share gains against Target over the past few years may be flattening as Target improves its own operations.

Proceeds from the TJX sale are being split relatively evenly between Kimberly-Clark and Constellation Brands. The trust says Kimberly-Clark could benefit now that the Kenvue deal has closed and argues the market is underestimating the company's ability to improve the consumer health brand after better-than-feared quarterly results last week. It also says Constellation Brands is showing improving beer sales and could gain from easier immigration policies following the Democrats' midterm election wins.

We have previously noted Jim Cramer’s Texas Pacific Land call in a rapid-fire Mad Money segment.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.