Jim Cramer’s Charitable Trust is selling 70 shares of Dupont at roughly $76.34, which will decrease its ownership to 800 shares of DD with a weighting of 1.93%. The initial purchase of 70 shares in February at around $67 has seen a nearly 14% increase in the stock price since then. DuPont shares were trying to recover from a January plunge caused by weak guidance for 2024 due to inventory destocking and weak demand in China. The stock has rebounded as order growth has improved, with CEO Ed Breen indicating an increase in year-to-date orders, boosting confidence in a second-half recovery. DuPont’s exposure to the electronics industry and its semiconductor business’s support for artificial intelligence spending are positive factors, despite concerns that the stock may have overshot due to inventory destocking.
The company’s year-to-date stock performance remains solid, and there is optimism for better times ahead as the electronics industry undergoes a multiyear recovery. DuPont’s valuation is still favorable compared to its peers, as it trades at a discount relative to pureplay electronic materials and water companies. However, there are concerns that the stock may have reached its peak following the recent increase, prompting a decision to trim the position and downgrade the rating to a 2, indicating a wait for a pullback before considering additional purchases. The sale of the 70 shares will result in a small loss of about 2% on stock purchased in August 2023, with Jim Cramer’s Charitable Trust remaining long on DD.
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