We're adding to our position in this medical technology name on a pullback

Published Tue, Sep 5 20232:57 PM EDT

We are buying 75 shares of GE HealthCare Technologies (GEHC), at roughly $67.51 apiece. Following Tuesday's trade, Jim Cramer's Charitable Trust will own 1,170 shares of GEHC, increasing its weighting in the portfolio to 2.74% from 2.57%. We are making a small buy in GE HealthCare Technologies , with the stock down roughly 2% on investor concerns over the expiration Wednesday of the company's most recent equity offering in June. The end of an equity lockup brings the risk of additional selling pressure. But it remains unclear why an investor who participated in the offering at $78 a share would take a loss here, given the solid quarterly earnings report and outlook the company delivered in late July. In addition, we think the potential of General Electric (GE) further monetizing its roughly 13.5% stake in GE HealthCare at these levels is low given how much the stock has pulled back. GE completed the separation of GEHC in January. Meanwhile, GE HealthCare management is expected to attend the Wells Fargo Healthcare conference on Thursday and is set to address the Morgan Stanley Global Healthcare conference next Tuesday. Wells Fargo last month initiated coverage on GEHC with an overweight rating and a $90-per-share price target on the belief the stock's double-digit annual growth rate through 2025 is underappreciated at the company's current valuation. Morgan Stanley is more balanced on GEHC, with an equal-weight rating and $76-per-share price target, but an upbeat presentation about the company's improving fundamentals post-separation from GE could turn Morgan Stanley analysts in a more bullish direction. (Jim Cramer's Charitable Trust is long GEHC. 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.

Healthcare and technology, Doctor using digital tablet with icon medical network on hospital background

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