We're Taking Some Profitable Chips Off the Table for This Holding

Symbol	Transaction Type	# Shares Traded	Recent Price $	Shares Owned After Trade	% Portfolio
WELL	Sell	110	209	640	2.50

After you receive this Alert, we will sell 110 shares of Welltower (WELL) at or near $209. Following the trade, WELL shares will account for roughly 2.5% of the Pro Portfolio.

In our analysis of Welltower’s December-quarter earnings report and guidance shared with you Thursday, we raised out price target but we also shared that if WELL shares continued to chug higher some prudent portfolio management may be called for. Part of that stems from the extended gain in the stock so far this month compared to the S&P 500, but also its move into a deeply overbought condition.

As you can see in the chart below, when we’ve seen that condition, WELL shares tend to move lower as that condition fades.

While we may be a tad early, we’ll take that risk as we lock in some fresh gains for the Portfolio and members. We’ll also point out the share count size we’re parting with still leaves the Portfolio with a 2.5% position size in Welltower.

We are keeping that as we continue to see Welltower benefiting from the intersection of the Silver Tsunami and senior housing shortage that is expected to persist over the next few years. If WELL shares pulled back near $190, we would consider adding back some shares as well as revisiting our Two rating.

As we make this trade, we will also reset our WELL panic point at $175.

More Pro Portfolio:

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)

At the time of publication, TheStreet Pro Portfolio was long WELL.