Jim Cramer’s Charitable Trust has increased its position in Kimberly-Clark (KMB), purchasing an additional 100 shares at approximately $98 each. Following the transaction completed on Friday, the trust’s total holding rose to 465 shares, boosting the stock’s weight in the portfolio from 0.9% to 1.15%.
The decision comes despite a challenging period for the consumer goods company, which has faced significant headwinds since the trust initiated its position earlier in the month. Last week, Kimberly-Clark issued a profit warning at a conference, cautioning that third-quarter sales and earnings per share would likely fall short of analyst expectations.
Management attributed some of these difficulties to execution issues, including a delayed launch of a new product due to production problems. Additionally, distributors in the firm’s professional channel have been destocking inventory. The company also continues to grapple with persistent challenges in China, where Huggies diaper sales remain suppressed by false claims regarding product quality.
Further pressures on the bottom line include rising freight and logistics costs, as well as the impact of retaliatory tariffs between the U.S. and China. However, Cramer indicated that the trust is looking past this near-term softness due to the promising prospects of the upcoming acquisition of Kenvue, which brings well-known brands such as Tylenol and Band-Aid into the fold.
Executives stated that synergy planning for the merger is progressing ahead of schedule, expressing confidence in the integration process. The potential for growth and operational upside from the Kenvue deal is the primary catalyst driving the increased investment.
As a reminder, CNBC Investing Club subscribers receive trade alerts before the trust executes trades. Cramer adheres to a 45-minute waiting period after sending alerts for non-TV-related trades, and a 72-hour waiting period if the stock was discussed on CNBC television.
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