# Honeywell bet didn't pay off, so we're selling half

> Jim Cramer's Charitable Trust is cutting its Honeywell position in half after the aerospace breakup and Middle East headwinds.
- Title: Honeywell bet didn't pay off, so we're selling half · CNBC
- Summary: Jim Cramer's Charitable Trust is cutting its Honeywell position in half after the aerospace breakup and Middle East headwinds. Sometimes you have to admit a…
- Keywords: honeywell, jim cramer, charitable trust, stock sale, aerospace, supply chain, middle east, earnings estimates, portfolio management, industrial automation, business, finance
- Source: CNBC — https://cnbc.com/2026/09/16/were-significantly-trimming-a-stock-that-has-not-gone-to-plan.html
- Author: Jeff Marks
- Published: 2026-09-16T16:37:22+00:00
- Read time: 1 min
- Topics: honeywell, jim cramer, charitable trust, stock sale, aerospace, supply chain, middle east, earnings estimates, portfolio management, industrial automation, business, finance
## Selling half of Honeywell position
Jim Cramer's Charitable Trust is selling 110 shares of Honeywell at roughly $209 each, cutting the position from 1.15% to 0.58% of the portfolio.
## The breakup thesis failed
Honeywell Aerospace slashed its outlook last quarter due to severe supply chain challenges, derailing the value unlock the trust had anticipated from the company's breakup.

> the long-awaited Honeywell breakout did not go according to plan and became a special situation we got wrong
## Middle East conflict is a headwind
Honeywell lost revenue in the first and second quarters due to the Iran war, and the trust suspects these headwinds will linger through the rest of the year.
## Wall Street estimates are too high
Management expects 15% earnings per share growth in 2027, but analysts are modeling around 20%. This gap suggests estimates will need to come down, which could pressure the stock.
## Downgrading from buy to sell
The trust is downgrading Honeywell from a buy-equivalent rating to sell-on-further-strength, using recent strength to exit the position.
## Still making money on the trade
Despite the failed thesis, the trust will realize a high single-digit percentage gain on shares purchased in 2023 and 2024.
## Key takeaway

Sometimes you have to admit a thesis was wrong and exit before it gets worse, even if recent price action looks positive.