Lilly Endowment Inc sells over $150 million in Eli Lilly stock

  • Investing.com
Lilly Endowment Inc sells over $150 million in Eli Lilly stock
Credit: © Reuters.

In a recent transaction, Lilly Endowment Inc, a significant shareholder in Eli Lilly & Co (NYSE: LLY ), has sold a substantial number of shares in the pharmaceutical company. The series of sales, which occurred on May 21, 2024, resulted in the disposal of Eli Lilly stock valued at over $150 million. The prices per share for these transactions ranged between $804.317 and $812.971.

The sales were executed in multiple transactions, with share prices varying within specific ranges. According to the footnotes provided in the SEC filing, the reported prices are weighted average prices, and the shares were sold in multiple transactions at prices within the stated ranges.

These transactions have altered Lilly Endowment Inc's holding in the company, yet they remain a major shareholder with tens of millions of shares still under their ownership. The exact number of shares sold at each price point within the ranges is available upon request, as noted in the footnotes of the SEC Form 4 filing.

Eli Lilly & Co, headquartered in Indianapolis, Indiana, is a well-known name in the pharmaceutical industry, with a wide array of products and a significant global presence. The sale by Lilly Endowment Inc represents a notable change in their investment portfolio, but the impact of this transaction on the company's stock performance remains to be seen.

Investors and market watchers often pay close attention to insider transactions such as these for insights into the sentiment of major stakeholders regarding the company's future prospects. However, the reasons behind Lilly Endowment Inc's decision to sell this portion of their holdings have not been disclosed in the filing.

For those interested in the detailed numbers and specific transactions, the SEC Form 4 filing provides a comprehensive account, including the commitment to disclose full information regarding the number of shares sold at each separate price within the ranges upon request.

InvestingPro Insights

Eli Lilly & Co (NYSE:LLY) has been a focal point for investors given its strong presence in the pharmaceutical industry and the recent insider transaction involving Lilly Endowment Inc. Analyzing the company through the lens of InvestingPro data and tips provides a deeper understanding of its financial health and market position.

With a robust market capitalization of $722.86 billion, Eli Lilly stands out as a significant entity in the sector. The company's stock has been trading at a high earnings multiple with a P/E ratio of 117.84, which adjusts to 76.08 on a last twelve months basis as of Q1 2024. This indicates a premium valuation, which is further underscored by a high Price / Book ratio of 56.41 during the same period.

Revenue growth remains a strong suit for Eli Lilly, with a notable increase of 29.76% over the last twelve months as of Q1 2024, suggesting robust sales performance. This financial vigor is complemented by a substantial gross profit margin of 80.16%, reflecting the company's ability to maintain profitability despite the costs of goods sold.

Among the InvestingPro Tips, Eli Lilly's track record of raising its dividend for 9 consecutive years and maintaining dividend payments for 54 consecutive years stand out. These factors, coupled with a dividend yield of 0.65%, may appeal to income-focused investors. Furthermore, the company's moderate level of debt and the expectation of net income growth this year present a balanced view of its financial management and future prospects.

For investors seeking additional insights, there are more InvestingPro Tips available, including the company's trading patterns and analyst predictions. With the knowledge that 9 analysts have revised their earnings downwards for the upcoming period, investors can weigh this against the company's historical performance and current valuation multiples. To explore these further, a visit to https://www.investing.com/pro/LLY can provide a comprehensive analysis, with an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.

As the market processes the recent insider sale by Lilly Endowment Inc, these InvestingPro Insights can help investors make more informed decisions regarding Eli Lilly & Co's stock.

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