Cramer's Charitable Trust Sells Eaton Shares to Trim Data Center Exposure

Jim Cramer's Charitable Trust said Monday it plans to sell 50 shares of Eaton at roughly $349 apiece shortly after the opening bell, a move that further scales back the portfolio's exposure to the data center sector.

Once the trade is complete, the trust will hold 175 shares of Eaton, with the position's weighting in the portfolio falling to 1.6% from 2%. The sale locks in a sizable gain of about 47% on stock the trust purchased in December 2023.

The decision comes as data center-related stocks stabilize from a sell-off last Thursday. Speaking at the trust's Annual Meeting on Friday, Cramer said he intended to keep cutting exposure to the data center buildout, pointing to concerns about a potential slowdown following the midterm elections.

At the heart of the caution is a worry that major hyperscalers could lower their 2027 capital expenditure plans. Building new data centers has become increasingly challenging, and any pullback in spending commitments from the biggest buyers would ripple through suppliers tied to the boom.

The profit-taking is not a verdict on Eaton's recent performance. The company reported its quarterly results last week, beating analyst expectations on both revenue and adjusted earnings per share. The CNBC Investing Club team described it as a "fantastic quarter."

Eaton's order book showed broad strength. Orders rose 39% in Electrical Americas, 51% in Electrical Global, and 20% in Aerospace, all measured on a rolling 12-month basis.

Even so, the trust sees risk in how concentrated Eaton's story has become in data centers. The segment accounted for about 21% of Eaton's sales in 2025, and that share is expected to increase significantly in 2027 once the company completes the separation of its Mobility business.

Selling a portion of the position now allows the trust to book profits on a strong performer while reducing the risk that a capex rethink among hyperscalers catches the portfolio overexposed.

The trust remains long Eaton. Under Investing Club rules, subscribers receive a trade alert before any transaction, and Cramer waits 45 minutes after an alert is sent before buying or selling a stock for the charitable trust. If a stock has been discussed on CNBC television, he waits 72 hours before executing the trade.