We’re selling 85 shares of Wells Fargo at roughly $86. Following Tuesday’s trade, Jim Cramer’s Charitable Trust will own 1,700 shares of WFC, decreasing its weighting to about 3.8 from 4.05%. We’re booking profits on our Wells Fargo position following its strong post-earnings move to new all-time highs. Shares of Wells Fargo, which analysts at Piper Sandler say is shifting from defense to offense, have rallied about 9% since the bank reported a better-than-expected third quarter on Oct. 14. Alongside the results was an aggressive share repurchase program, a reaffirmation of its full-year net interest income outlook, and a boost to management’s medium-term financial targets. Now that the company is no longer shackled by the Fed asset cap, it is targeting a 17% to 18% return on tangible common equity, up from the prior goal of 15%. WFC YTD mountain Wells Fargo YTD This sale does not reflect any change to our long-term positive thesis in Wells Fargo. Instead, this is part of our normal course of disciplined profit-taking following strong moves. From this sale, we will realize a big gain of about 170% on stock purchased in January 2021. (Jim Cramer’s Charitable Trust is long WFC. 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.
