Cramer says his charitable trust bought back Disney after exiting its position in June

Published Fri, Sep 24 20212:07 PM EDTUpdated Fri, Sep 24 20213:09 PM EDT

CNBC's Jim Cramer said Friday that his charitable investment trust bought back into Disney , roughly three months after selling out of shares of the media and entertainment giant for the first time in 16 years. "Disney cruises [are] doing very well. Disney is back," Cramer said on "Squawk on the Street." "I'm back, $171. It was lower than where I sold it." Disney shares closed 4% lower Tuesday to $171.17 each, after CEO Bob Chapek addressed the Goldman Sachs Communacopia Conference. He warned about headwinds on subscription video streaming growth in the fourth quarter and said the company won't reinstate its dividend anytime soon. "That crushed the stock. But that gave us the opportunity to buy," Cramer said. The charitable trust bought the stock late Tuesday. When the "Mad Money" host said in June that the trust sold Disney, shares were trading just above $173 per share. On Friday, Cramer said the leadership of Chapek, who took over as CEO from Bob Iger in late February 2020, is a key reason for his renewed confidence in Disney. "People who are just playing him as a guy who is 'Disney+ versus people going to the movies' are really missing the point," Cramer said. Disney+, its streaming service, has been a big growth driver for the company, especially during the Covid pandemic, as millions of people spent more time at home and craved on-demand video content. "He's got a really holistic approach. That is not nonsense. He is looking at the entire world that is Disney, and I think he's making a lot of sense," Cramer added. Chapek had served as chairman of Disney parks, experiences and products before getting the top job. Despite the praise, Cramer said he thinks Chapek made a mistake when suggesting any resumption of the dividend and share repurchase program would be in the "distant future." "That was wrong. He should have said, 'It's up to the board,'" Cramer said. Disney shares were down about 3% year to date, compared with a gain of more than 18% for the S & P 500 .

Disney character Mickey Mouse is seen above the entrance at Disneyland Paris during the 25th anniversary of the park, in Marne-la-Vallee, near Paris, France.

Benoit Tessier | Reuters

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Cramer says his charitable trust bought back Disney after exiting its position in June

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