On August 11, 2023, Lilly Endowment Inc (Trades, Portfolio)., a private philanthropic foundation, executed a significant transaction in the stock market. The firm reduced its holdings in Eli Lilly and Co (LLY, Financial), a move that has drawn the attention of value investors. This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded stock, and the implications of the transaction for value investors.
Details of the Transaction
Lilly Endowment Inc (Trades, Portfolio). reduced its stake in Eli Lilly and Co by 83,039 shares, representing a 0.08% change in its holdings. The shares were traded at a price of $528.5 each. Following the transaction, Lilly Endowment Inc (Trades, Portfolio). now holds 100,613,810 shares in Eli Lilly and Co, representing 112.33% of its portfolio. The transaction had a -0.09% impact on the guru's portfolio, and Lilly Endowment Inc (Trades, Portfolio). now holds 10.60% of Eli Lilly and Co's total shares.
Profile of the Guru: 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, which forms the core of its financial foundation. Lilly Endowment Inc (Trades, Portfolio). supports causes of religion, education, and community development, with a majority focus on organizations operating out of Indiana. The firm's equity stands at $47.38 billion, with Eli Lilly and Co being its only holding. 
Overview of the Traded Stock: Eli Lilly and Co
Eli Lilly and Co, a US-based drug firm, focuses 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 market capitalization stands at $518.24 billion, with a current stock price of $545.92 and a PE percentage of 77.01. The stock is significantly overvalued according to the GF Value Rank, with a GF Value of 302.93 and a price to GF Value of 1.80. 
Evaluation of the Traded Stock's Performance
Since its IPO on July 9, 1970, Eli Lilly and Co's stock has gained 13,379.51%. Year-to-date, the stock has gained 49.57%. The stock's gain percent since the transaction is 3.3%. The stock's GF Score is 75/100, indicating good outperformance potential.
Analysis of the Traded Stock's Financial Health
Eli Lilly and Co's financial strength is ranked 6/10, with a profitability rank of 9/10 and a growth rank of 8/10. The company's cash to debt ratio is 0.15, and its interest coverage is 21.35. The company's ROE and ROA are 63.06 and 12.89, respectively. The company's Piotroski F-Score is 7, and its Altman Z score is 8.34.
Comparison with Other Gurus
Other gurus who hold Eli Lilly and Co's stock include Ken Fisher (Trades, Portfolio), Dodge & Cox, and Ron Baron (Trades, Portfolio). The largest guru holding the stock is Vanguard Health Care Fund (Trades, Portfolio).
Conclusion
The recent transaction by Lilly Endowment Inc (Trades, Portfolio). in Eli Lilly and Co's stock is significant for value investors. The transaction has reduced the guru's stake in the stock, which may influence the stock's performance and the guru's portfolio. However, the stock's strong financial health and performance indicators suggest that it remains a viable investment option. As always, investors are advised to conduct their own research before making investment decisions.
