Cramer Trust sells Eaton stock to cut data center bets

Jim Cramer's Charitable Trust will sell 50 shares of Eaton at roughly $349 per share shortly after the market opens Monday.

This transaction reduces the trust's holdings to 175 shares. The position's weight in the portfolio drops from 2% to 1.6% as a result. The trust purchased these shares in December 2023. The sale locks in a gain of about 47%.

Cramer discussed the strategy at the trust's Annual Meeting on Friday. He said he intends to continue trimming exposure to the data center buildout. His concern centers on a potential slowdown in spending after the midterm elections. He noted that major hyperscalers might lower their capital expenditure plans for 2027. Any pullback by these large buyers would ripple through suppliers tied to the current boom.

The move comes as data center stocks stabilize following a sell-off last Thursday. Eaton reported quarterly results last week. The company beat analyst expectations on both revenue and adjusted earnings per share. The CNBC Investing Club team called it a fantastic quarter. Orders rose 39% in Electrical Americas and 51% in Electrical Global on a rolling 12-month basis. Orders in Aerospace increased by 20%.

Data centers accounted for about 21% of Eaton's sales in 2025. That share is expected to grow in 2027 when the company completes the separation of its Mobility business. The trust sees risk in this concentration. Selling a portion of the position now allows the trust to book profits while reducing the chance that a capex rethink catches the portfolio overexposed.

The trust remains long Eaton. Under Investing Club rules, subscribers receive a trade alert before any transaction. 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.

The trust plans to execute the sale shortly after the opening bell. The trade will finalize the reduction in the Eaton position for the current period.