Jim Cramer’s Charitable Trust purchased 75 additional shares of the off-price retailer TJX Companies on Thursday, according to a trade alert issued by the CNBC Investing Club. The transaction, conducted at a price of approximately $125 per share, increases the Trust’s total investment in the parent company of T.J. Maxx, Marshalls, and HomeGoods.
Following the purchase, the Trust’s holdings in TJX total 1,125 shares. The move increases the stock’s weighting within the charitable trust’s investment portfolio to 3.6%, up from 3.33%.
The purchase occurred one day after TJX stock reached a new 52-week low. The Investing Club’s alert noted that the company’s shares had declined by about 20% since the beginning of August. The alert attributed the stock’s performance during that period to two main factors: a reported same-store sales miss for its Marmaxx division in the second quarter and rising oil prices. On the day of the Trust’s transaction, TJX shares closed up approximately 2%.
In its notice to members, the Investing Club detailed its rationale for the additional investment. The alert cited statements made by TJX CEO Ernie Herrman on a recent earnings call, in which he reported that sales in August, the first month of the company’s third quarter, were improved compared to the second quarter. The Investing Club stated these comments gave them confidence regarding the Marmaxx division’s performance.
The alert also pointed to recent government data indicating that August retail sales were stronger than economists had forecast. According to the Investing Club, this suggests consumers are managing the impact of elevated gasoline costs. The notice stated a belief that shoppers may turn to off-price retailers if household budgets tighten, driving traffic to TJX-owned stores.
The CNBC Investing Club periodically issues trade alerts to its subscribers, notifying them of transactions made by the charitable trust managed by Jim Cramer.
