Shortly after the opening bell, we will sell 10 shares of Eli Lilly at around $958 per share. After Monday’s trading, Jim Cramer’s Charitable Trust will own 100 shares of LLY, reducing its weight to 2.85% from around 3.13%. Now that we are no longer underweight, we are selling some Eli Lilly shares. We downgraded Lilly stock to our 2 rating last Tuesday after it rebounded to a new all-time high. We previously upgraded Lilly to our 1 buy rating in July in the mid-$800s when the stock fell on concerns about competition in the fast-growing GLP-1 class of diabetes drugs (Mounjaro) and weight loss (Zepbound) drugs. Those concerns quickly proved overblown after the Q2 earnings report, which reinforced its leadership in the GLP-1 class with improved supply. LLY 1Y mountain Eli Lilly YTD However, this downgrade is all about discipline. We have been letting the stock run higher for almost a full year. Our previous sale was at $591 in September 2023. With Lilly stock up more than 60% since then, we don’t want to surprise ourselves if we’re being too greedy. We’ll make a cool 288% gain on shares purchased in January 2022. (Jim Cramer’s long-term LLY fund. See here for a complete list of stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his fund’s portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after sending a trade alert before executing the trade. The above investment club information is subject to our Terms and Conditions and Privacy Policy, as well as our Disclaimer. No fiduciary obligation or duty is, and is not, created by your receipt of any information provided in connection with the investment club. No specific outcome or profit is guaranteed.
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We're making ~300% profit on hot pharma stocks.
