On June 28, 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 Lilly Endowment Inc. and Eli Lilly and Co., and the impact of the transaction on the stock market.
Details of the Transaction
Lilly Endowment Inc. sold 11,760 shares of Eli Lilly and Co. at a price of $465.41 per share. This transaction reduced the guru's total holdings in the company to 101,237,050 shares, representing a 10.66% stake in the company. Despite the reduction, Eli Lilly and Co. still constitutes a significant 133.82% of Lilly Endowment Inc.'s portfolio. The transaction had a minor impact of -0.02% on 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. The foundation's assets are entirely made up of Eli Lilly and Company stocks, giving it a market value of $9.5 billion. The foundation's investment portfolio consists solely of Eli Lilly and Co. (LLY, Financial), making it a significant player in the pharmaceutical industry.
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 key products include Verzenio for cancer and Mounjaro, Jardiance, Trulicity, Humalog, and Humulin for diabetes. With a market capitalization of $430.17 billion, the company's stock is currently priced at $453.16, with a PE percentage of 73.22. However, according to GuruFocus's GF Valuation, the stock is significantly overvalued with a GF Value of 273.42.
Analysis of Eli Lilly and Co.'s Stock
Since the transaction, Eli Lilly and Co.'s stock has seen a -2.63% decrease in price. Despite this, the stock has seen an impressive 11089.14% increase since its IPO and a 24.16% increase year-to-date. The stock's GF Score is 79, indicating good future performance potential. However, the stock's GF Value rank is 1, suggesting it is significantly overvalued.
Evaluation of Eli Lilly and Co.'s Performance
Eli Lilly and Co. has shown strong performance over the past three years, with a revenue growth of 9.80%, EBITDA growth of 9.10%, and earning growth of 11.60%. The company's F Score is 6, and its Z Score is 7.47, indicating financial stability. However, the company's gross margin growth is -0.70, while its operating margin growth is 5.70.
Comparison with Other Gurus
Other gurus, including Ken Fisher (Trades, Portfolio), Dodge & Cox, and Jefferies Group (Trades, Portfolio), also hold Eli Lilly and Co.'s stock. However, the largest guru holder of the stock is the Vanguard Health Care Fund (Trades, Portfolio).
Conclusion
In conclusion, Lilly Endowment Inc.'s recent transaction has had a minor impact on its portfolio and the stock price of Eli Lilly and Co. Despite the reduction, the foundation remains a significant holder of the pharmaceutical company's stock. With a GF Score of 79, Eli Lilly and Co. shows good future performance potential, making it a stock to watch for value investors.
All data and rankings are accurate as of July 10, 2023.
