Procter & Gamble earnings prompt Cramer trust to trim PG stake
CNBC's Investing Club said Jim Cramer's trust sold 100 P&G shares before earnings, citing a rally and possible conservative guidance.
By Theo Nakamura · Staff Writer
· 3 min read
Procter & Gamble earnings are due Wednesday morning, and CNBC’s Investing Club said Tuesday that Jim Cramer’s Charitable Trust is reducing its PG position before the report. The move matters for retail investors because it shows one portfolio taking gains in a defensive consumer stock after a rally, rather than waiting to see how guidance lands.
The club said the trust is selling 100 shares of Procter & Gamble at about $151.16. After the sale, the trust will hold 200 shares of PG, cutting the stock’s portfolio weighting to 0.75% from 1.15%, according to CNBC’s Investing Club.
CNBC’s Investing Club said the sale will lock in a small gain of roughly 1% on shares bought in November 2025. The club also said Jim Cramer’s Charitable Trust remains long Procter & Gamble after the trade.
Why is Procter & Gamble being trimmed before earnings?
CNBC’s Investing Club said the decision is tied to both the stock’s recent strength and the risk that management could issue cautious guidance. Guidance is a company’s own outlook for future sales, earnings or other business measures, and it can move a stock even when the latest quarter looks fine.
The club noted that Procter & Gamble’s upcoming report covers the fourth quarter of its fiscal 2026. Because that closes the fiscal year, the company is also expected to provide an outlook for fiscal 2027, which has already begun.
According to CNBC’s Investing Club, Procter & Gamble has a history of setting expectations carefully and then beating them. The club said another conservative forecast from management could pressure the stock, even if investors generally view that style as cautious rather than aggressive.
What was happening in the market Tuesday?
Procter & Gamble shares were rising Tuesday and beating the broader market, CNBC’s Investing Club said. The club attributed the move partly to investors shifting money out of data-center-related stocks and into other areas of the market.
Consumer staples, the sector that includes companies selling everyday goods such as household products, food and beverages, was the second-best performing sector in the S&P 500 during the session, according to CNBC’s Investing Club. The group also pointed to Coca-Cola’s 4% gain after an upbeat earnings report as a boost for the sector.
Consumer staples are often treated as defensive stocks because demand for their products tends to be less tied to economic cycles than demand for big-ticket or discretionary purchases. That does not make them risk-free, but it helps explain why investors may use them to balance exposure to faster-moving areas of the market.
CNBC’s Investing Club said the original Procter & Gamble position, taken last fall, was based on the idea that the stock could help hedge weakness in the artificial-intelligence trade. The club said that exposure has helped during a volatile summer, even though AI-related stocks were strong at the start of the year.
CNBC’s Investing Club also said subscribers receive a trade alert before Jim Cramer makes a trade for the charitable trust. Under the club’s stated rules, Cramer waits 45 minutes after sending a trade alert before buying or selling a stock in the trust, and waits 72 hours if he has discussed the stock on CNBC TV.
This story draws on original reporting from CNBC.
