We’re selling 80 shares of Texas Roadhouse at roughly $191. Following Tuesday’s trade, Jim Cramer’s Charitable Trust will own 450 shares of TXRH, decreasing its weighting to about 2.5% from 2.95%. We’re partially offsetting the cash used to initiate a new position in GE Vernova with a trim of Texas Roadhouse to maintain some discipline to the slightly overbought S & P Short Range Oscillator. Shares of the steak restaurant chain have been a strong performer over the past few trading sessions. Since last Friday, the stock has rallied about 10% thanks to a reacceleration in comparable store sales through the first five weeks of the second quarter and a significant de-escalation in the U.S.-China trade war. The gains over this stretch flipped Texas Roadhouse from a loss to a year-to-date gain of roughly 5%, ahead of the broader market’s decline of less than 1%. TXRH YTD mountain Texas Roadhouse YTD The same goes with our position in Texas Roadhouse, which we added to twice following President Donald Trump ‘s “liberation day” of “reciprocal tariffs,” including a small one near $150 when the stock market was historically oversold right before the administration announced a 90-day pause on levies. Although the Texas Roadhouse quarter played out as we hoped with comps rebounding as the weather warmed up across the country and a solid uptick in share repurchases, we lowered our price target to $195 to reflect increased margin pressure tied to rising beef prices. With the stock price nearing our new target, we’re capitalizing on this strength to lighten up on the position and downgrade the stock to our 2 rating. From this sale, we will realize a small gain of about 2% on stock purchased in early February 2024. (Jim Cramer’s Charitable Trust is long TXRH, GEV. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
