On June 29, 2023, Lilly Endowment Inc., a private philanthropic foundation, reduced its stake in Eli Lilly and Co. (LLY, Financial), a leading pharmaceutical company. This article provides an in-depth analysis of the transaction, the profiles of both entities, and the impact of the transaction on the stock market.
Details of the Transaction
Lilly Endowment Inc. sold 55,875 shares of Eli Lilly and Co. at a price of $465.08 per share. This transaction resulted in a 0.06% reduction in the guru's holdings and had a -0.07% impact on their portfolio. Despite the reduction, Lilly Endowment Inc. still holds a significant position in Eli Lilly and Co., with 101,192,935 shares, representing 10.66% of the company's total shares and 133.74% of the guru's portfolio.
Profile of Lilly Endowment Inc.
Lilly Endowment Inc. is a private philanthropic foundation based in Indianapolis. Founded in 1937 by the Lilly family, the foundation supports causes of religion, education, and community development. Despite its philanthropic focus, the foundation's financial backbone is Eli Lilly and Company, which makes up the entirety of its assets. The foundation's equity is valued at $47.38 billion, with Eli Lilly and Co. being its only holding.
Overview of Eli Lilly and Co.
Eli Lilly and Co., founded in 1970, is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. The company's market capitalization stands at $430.17 billion. However, according to GuruFocus's valuation, the company is significantly overvalued, with a GF Value of 273.42 and a Price to GF Value ratio of 1.66. The company's PE percentage is 73.22, indicating a high valuation.
Performance of Eli Lilly and Co.'s Stock
Since its IPO, Eli Lilly and Co.'s stock has seen a significant increase of 11,089.14%. The stock's year-to-date performance is also impressive, with a gain of 24.16%. However, since the transaction, the stock has seen a slight decrease of 2.56%. The stock's GF Score is 79, indicating good future performance potential.
Financial Health of Eli Lilly and Co.
Eli Lilly and Co. has a cash to debt ratio of 0.19 and an interest coverage of 20.91. The company's return on equity (ROE) is 57.11%, and its return on assets (ROA) is 11.65%. Despite a slight decrease in gross margin growth (-0.70%), the company has seen a significant increase in operating margin growth (5.70%) and a steady 3-year revenue and EBITDA growth of 9.80% and 9.10% respectively.
Momentum and Predictability of Eli Lilly and Co.'s Stock
The stock's 5-day RSI is 32.46, and its 14-day RSI is 50.61, indicating a neutral momentum. The stock's 6 - 1 Month Momentum Index is 20.23, and its 12 - 1 Month Momentum Index is 33.06, suggesting a moderate momentum.
Other Gurus' Investment in Eli Lilly and Co.
Other notable gurus who hold Eli Lilly and Co.'s stock include Ken Fisher (Trades, Portfolio), Dodge & Cox, and Jefferies Group (Trades, Portfolio). The largest guru holder of the stock is the Vanguard Health Care Fund (Trades, Portfolio).
In conclusion, Lilly Endowment Inc.'s recent transaction has had a minimal impact on its portfolio and Eli Lilly and Co.'s stock. However, the transaction reflects the guru's confidence in the pharmaceutical company's future performance.
All data and rankings are accurate as of July 10, 2023.
