On August 31, 2023, Lilly Endowment Inc (Trades, Portfolio), a private philanthropic foundation, reduced its stake in Eli Lilly and Co (LLY, Financial), a leading drug firm. This article provides an in-depth analysis of the transaction, the profiles of both Lilly Endowment Inc (Trades, Portfolio) and Eli Lilly and Co, and the impact of the transaction on the stock and the guru's portfolio.
Details of the Transaction
Lilly Endowment Inc (Trades, Portfolio) reduced its holdings in Eli Lilly and Co by 46,541 shares, representing a -0.05% change in its portfolio. The shares were traded at a price of $554.81 each. Following the transaction, Lilly Endowment Inc (Trades, Portfolio) holds a total of 100,193,810 shares in Eli Lilly and Co, accounting for 117.39% of its portfolio and 10.55% of the traded stock.
Profile of Lilly Endowment Inc (Trades, Portfolio)
Lilly Endowment Inc (Trades, Portfolio) is a private philanthropic foundation based in Indianapolis. Founded in 1937 by the Lilly family, the firm operates independently from the Eli Lilly and Company pharmaceutical business, focusing on supporting causes of religion, education, and community development. The firm's assets are entirely made up of Eli Lilly and Company, and it currently has a market value of $9.5 billion. Lilly Endowment Inc (Trades, Portfolio)'s portfolio consists of a single stock, Eli Lilly and Co.
Profile of Eli Lilly and Co
Eli Lilly and Co, with a market capitalization of $528.86 billion, is a drug firm focusing on neuroscience, cardiometabolic, cancer, and immunology. The company's key products include Verzenio for cancer; Mounjaro, Jardiance, Trulicity, Humalog, and Humulin for diabetes; and Taltz and Olumiant for immunology. The company's stock is currently priced at $557.11, with a PE percentage of 78.59. According to GuruFocus, the stock is significantly overvalued, with a GF Value of 308.93 and a price to GF Value of 1.80.
Stock Performance and Valuation
Since the transaction, Eli Lilly and Co's stock price has increased by 0.41%. The stock has seen a year-to-date price change of 52.64% and a staggering 13,655.8% increase since its Initial Public Offering (IPO) in 1970. The stock's GF Score is 75/100, indicating a likely average performance in the future.
Financial Health and Profitability of Eli Lilly and Co
Eli Lilly and Co's financial health is ranked 6/10 according to its Financial Strength and has an interest coverage of 21.35. The company's profitability is ranked 9/10 according to its Profitability Rank, with a ROE of 63.06% and a ROA of 12.89%.
Growth and Momentum of Eli Lilly and Co
Eli Lilly and Co's growth is ranked 8/10 according to its Growth Rank, with a 3-year revenue growth of 9.80% and a 3-year EBITDA growth of 9.10%. The company's momentum is ranked 3/10 according to its Momentum Rank, with a 14-day RSI of 72.99.
Other Gurus' Involvement
Other gurus who also hold Eli Lilly and Co include Ken Fisher (Trades, Portfolio), Dodge & Cox, and Ron Baron (Trades, Portfolio). The largest guru involved in Eli Lilly and Co is Vanguard Health Care Fund (Trades, Portfolio).
In conclusion, Lilly Endowment Inc (Trades, Portfolio)'s recent transaction has had a minimal impact on its portfolio and the traded stock. However, the transaction provides valuable insights into the guru's investment strategy and the performance of Eli Lilly and Co.
