Jim Cramer’s Charitable Trust is selling 150 shares of Morgan Stanley at around $94.18, which will decrease its weighting in the stock to about 3.80% from 4.20%. The market’s pulse is being monitored using the Oscillator, which entered the week in slightly overbought territory at 4.45%. An overbought reading suggests that the market may be due for a rest after a big run in a short period. Despite the S&P 500 being off its highest levels of the year, it has rallied approximately 4% since April 19. While it is uncertain if there will be a pullback like after the last overbought reading, taking gains along the way is important during a volatile earnings season.
Morgan Stanley’s shares are trading near their 2024 high and are close to surpassing their 52-week high from July. The stock has rebounded due to an increase in investment banking activity, such as M&A and IPOs, but there is a desire for more confidence in the wealth management unit’s ability to reach its $10 trillion asset-gathering goal and expand margins to 30%. Although the first quarter’s results were positive, the 3.6% dividend yield and healthy buyback prevent a larger sale at current prices. By trimming the position, a small gain of about 4% will be realized on shares purchased in July 2021. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before he makes a trade, following a waiting period of either 45 minutes or 72 hours after discussing a stock on CNBC TV.
The investing club information is governed by terms and conditions, a privacy policy, and a disclaimer. There is no fiduciary obligation or duty created by receiving information from the club, and no specific outcome or profit is guaranteed. Jim Cramer’s Charitable Trust holds 1,250 shares of Morgan Stanley after selling 150 shares, maintaining a disciplined approach to taking gains along the way. The market’s Oscillator reading suggests caution due to being overbought, as the index has made a solid comeback but may experience a pullback. Despite uncertainty about the market’s future direction, the trust remains cautious and focuses on managing its positions effectively.
The rebound in investment banking activity has been a key factor in Morgan Stanley’s stock recovery, as it has climbed from the $70s and $80s. While the trust is pleased with the first quarter results and the company’s dividend yield and buyback program, there is a desire for more confidence in the wealth management unit’s performance. The trust remains mindful of the importance of taking gains along the way during a volatile earnings season and continues to monitor the market’s pulse through technical tools such as the Oscillator. By selling a portion of its Morgan Stanley position, the trust is able to realize a small gain on its holdings.
As a subscriber to the CNBC Investing Club with Jim Cramer, individuals receive trade alerts before Jim makes a trade in his charitable trust’s portfolio. There are waiting periods in place to ensure that trades are executed in a manner consistent with the club’s guidelines. While the trust has made the decision to trim its position in Morgan Stanley, it remains focused on managing its portfolio effectively and making appropriate adjustments based on market conditions. Overall, the trust’s disciplined approach to investing and careful consideration of market indicators such as the Oscillator guide its decision-making process.
