The content discusses the sale of 25 shares of Palo Alto Networks (PANW) at approximately $315.50 shortly after the opening bell, resulting in Jim Cramer’s Charitable Trust owning 275 shares of PANW. This decreases the weighting of PANW in the portfolio from 2.90% to 2.67%. Morgan Stanley had a positive outlook on PANW leading up to its earnings announcement, citing conservative estimates and momentum in large deals. This contrasts with the previous quarter when the company missed estimates and reduced its outlook, causing a significant drop in share price. The trust had purchased additional shares of PANW after the sell-off in February, leading to an average purchase price of around $283 per share.
Despite feeling bullish about PANW leading into earnings, the trust decided to sell a portion of their shares and move their rating back to 2 due to the strong recent performance of the stock. PANW had already increased more than 17% since April 4 and was up about 5% over the past three sessions. The announcement of a deal to buy cloud security software assets from IBM was seen positively by analysts, who believe it will benefit PANW in various ways, including accelerating market share in security analytics. The partnership with IBM aligns with PANW’s strategy of platformization, which was highlighted after its earnings report in February.
The trust is set to realize a gain of 77% on the stock purchased in February 2023, showcasing the successful investment in PANW. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade. There are specific waiting periods in place before Jim can buy or sell a stock in his charitable trust’s portfolio after issuing a trade alert, to ensure transparency and compliance with regulations. The information provided as part of the Investing Club is subject to terms and conditions, privacy policy, and a disclaimer, with no guaranteed specific outcome or profit.
Overall, the content highlights the trust’s actions regarding PANW, including the purchase of additional shares after a drop in share price, a sale of some shares prior to earnings, and the positive outlook based on industry analysis and recent news of a partnership with IBM. The trust’s strategic decisions, combined with the insights provided by Morgan Stanley and other analysts, demonstrate a thoughtful approach to managing their portfolio. Through the CNBC Investing Club, subscribers have access to timely trade alerts and guidance from Jim Cramer, allowing them to make informed investment decisions.
