We’re booking some big profits in a bank stock near record highs that we still love
We’re selling 10 shares of Goldman Sachs at roughly $835 each. Following Wednesday’s trade, Jim Cramer’s Charitable Trust will own 200 shares of GS, decreasing its weighting in the portfolio to about 4.4% from about 4.6%. The financials were one of the top-performing groups in the market Wednesday, and we are capitalizing on this strength by locking in big profits in Goldman Sachs. Shares of this premier investment bank were trading firmly above $800 and have recovered the entire drop from their third-quarter earnings selloff on Oct. 14 and then some. Goldman shares dropped more than 5.5% early in that session and traded as low as $742 despite strong results, prompting us to upgrade the stock back to our buy-equivalent 1 rating . The stock worked back to a record high close just under $834 on Nov. 12, before a tough three-session losing streak. But thanks to gains in nine of the past 11 trading sessions, the stock was again less than 1% away from its all-time closing high. Given this run, we are moving our rating back to our hold-equivalent 2. GS YTD mountain Goldman Sachs YTD Another reason for this sale is that the market is knocking on the doorstep of becoming overbought. Tuesday’s market gains pushed the S & P Short Range Oscillator to 3.02%, which is not far off the 4% technically overbought threshold. We’ve also made a bunch of buys over the past two or three weeks when the market was breaking down, and the Oscillator was nearing oversold territory. However, we haven’t matched those buys with sales, except for our exit from Disney . The cash raised from this Goldman trim will help replenish our coffers and keep us flexible should we see another dip. From this sale, we will realize a gain of about 48% on Goldman shares purchased in December 2024. By no means does this trim change our view that Goldman is a great stock for the long haul and a great company taking advantage of the resurgence of long-dormant Wall Street dealmaking. (Jim Cramer’s Charitable Trust is long GS. 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.
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