Jim Cramer trimmed his Union Pacific Corp (NYSE:UNP) stake Wednesday, bringing the total position to 2.60% of his charitable trust.
“The company’s 7% year-over-year volume growth target is at risk due to challenges related to the chip shortage and congestion at the ports,” Cramer said in a note to members of CNBC’s “Investing Club.”
The main reason he is trimming the position is that he thinks a pullback is likely following the company’s earnings report.
Union Pacific is set to announce its third-quarter financial results before the market opens on Thursday. Cramer said Union Pacific has traded lower following four of its past five earnings reports.
See Also: A Look Into Union Pacific’s Debt
He noted Union Pacific has become a pretty large position in the charitable trust after he added 50 shares around $209 in early September. He sold 150 shares for roughly $225 per share today.
Cramer emphasized that Wednesday’s portfolio move is only a trim and that he might buy the shares back on a pullback. He plans to hold the majority of his stock longer-term because he expects it to perform well in 2022.
UNP Price Action: Union Pacific has traded as high as $231.26 and as low as $171.50 over a 52-week period.
The stock was up 0.16% at $226.13 at time of publication.
Photo: Arvell Dorsey Jr. from Flickr.
