Honeywell International Inc.

🇺🇸NASDAQ Global Select
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Honeywell International Inc. stock analysis HON overview
Bullish +75

We're booking profits in a stock that has rallied almost 10% since our last buy

📉 Jim Cramer's Charitable Trust sold 30 shares of Honeywell (HON) at approximately $231.78 to book profits after a nearly 10% rally since the last buy in late April.

📊 The sale reduces the trust's HON holdings from around 2.5% weighting to 2.3%, marking a small trim as the stock continues its upward momentum.

💻 Honeywell's recent gains were partly driven by news that the Trump administration plans to provide $2 billion in grants and equity stakes to quantum computing companies, including Quantinuum where Honeywell holds a majority stake.

📉 Jim Cramer expressed concern on Thursday's Morning Meeting that HON shares had risen too much on the quantum news, prompting the decision to sell some positions as gains persisted.

🚀 Quantinuum is seeking to raise $1.05 billion in an upcoming IPO which could value the business at around $12.7 billion, down from prior reports of $15 to $20 billion.

📉 The trust will downgrade its rating on Honeywell to a 2 following the profit-taking trade.

🗓️ Management plans to re-evaluate its position after upcoming investor days for Honeywell Aerospace and the main company scheduled for June 3 and June 11, respectively.

💰 From this specific sale, the trust will realize an average gain of about 33% on shares purchased in September 2022 and August 2023.

📢 Jim Cramer's Charitable Trust is currently long HON, with a full list of holdings available for subscribers to view.

⏳ The trust follows specific trading protocols, waiting 45 minutes after sending a trade alert before executing the sale in its charitable portfolio.

📺 If a stock has been discussed on CNBC TV, the trust waits 72 hours after issuing a trade alert before buying or selling.

⚠️ All investing club information is subject to terms and conditions, with no fiduciary obligation or duty created by receiving the information.

🚫 No specific outcome or profit is guaranteed for subscribers of the CNBC Investing Club.

Bullish Signals
  • Honeywell stock has rallied almost 10% since the last buy in late April, demonstrating strong upward momentum.
  • The stock has gained more than 6% since Thursday, driven by positive news regarding federal quantum computing grants.
  • Honeywell owns a majority stake in Quantinuum, which secured a letter of intent to receive $2 billion in federal funding and equity stakes from the Commerce Department.
  • Quantinuum is seeking to raise $1.05 billion through an upcoming initial public offering that could value the business at around $12.7 billion.
  • The sale allows the trust to realize an average gain of about 33% on shares purchased in September 2022 and August 2023.
Risk Factors
  • The stock has rallied almost 10% since the last buy recommendation, prompting a profit-taking sale that reduces portfolio weighting from 2.5% to 2.3%.
  • Quantinuum's valuation is downgraded to around $12.7 billion in an upcoming IPO, which is significantly lower than prior reporting of $15 to $20 billion.
  • Jim Cramer believes Honeywell shares are 'up too much' on the news regarding federal funding for quantum computing, suggesting a potential overvaluation risk.
  • The firm plans to downgrade its rating to a 2, indicating a bearish shift in sentiment ahead of upcoming investor days.
  • The stock has already rallied more than 6% since Thursday, compounding gains that may lead to further downside volatility if the rally continues.
Full Analysis
Jim Cramer's Charitable Trust is selling 30 shares of Honeywell (HON) at approximately $231.78 to book profits after the stock rallied nearly 10% since its purchase in late April and more than 6% since Thursday. The sale reduces the trust's position from roughly 2.5% weighting to 2.3%, with an average gain of about 33% realized on shares bought in September 2022 and August 2023. The decision follows news that Honeywell owns a majority stake in Quantinuum, which received a letter of intent from the Commerce Department for $2 billion in federal grants and equity stakes related to quantum computing, causing Jim Cramer to believe shares were overextended on this specific news. Additionally, Quantinuum is seeking to raise $1.05 billion in an upcoming IPO that could value the business at around $12.7 billion, lower than prior estimates of $15 to $20 billion. The trust plans to downgrade its rating to a 2 and will re-evaluate its stance after Honeywell's investor days on June 3 and June 11, which are key events ahead of the company's anticipated breakup next month.