Recent Trading Updates from the Charitable Trust
On Tuesday, there were three more trades conducted. The Charitable Trust sold 10 shares of Eli Lilly stock, each fetching around $1,034. Following this transaction, the trust’s ownership of Eli Lilly will decrease to 90 shares, lowering the stake from 2.8% to about 2.5%. Furthermore, we bought 100 shares of Nike for roughly $62, which raises Nike’s position in the portfolio to 1,400 shares, nudging its weight up from around 2.2% to 2.4%. Additionally, we initiated a new position in Procter & Gamble by acquiring 250 shares at about $146, anticipating that PG will represent approximately 1% of the overall portfolio.
Regarding Eli Lilly, it’s important to note that we’ve seen substantial gains. The company recently reached an intraday high during Tuesday’s trading session. Since a significant upgrade in ratings back on August 13, shares of Eli Lilly, a frontrunner in GLP-1 therapeutics, have surged 55%. The stock’s impressive trajectory since late October has prompted us to take some profit, adjusting our rating for Lilly back to a 2. This price rally has pushed the market cap to nearly $1 trillion, aligning with our long-term outlook, which was strongly supported by the forecasts of celebrity investor Ken Langone for 2023. We’re now adjusting our price target higher from $925 to $1,100 per share. But let’s be clear: we always advocate for discipline over belief. Our strategy here is to trim when stock prices see parabolic growth. With this sale, we’ll realize a remarkable gain of around 330% on shares purchased last year.
As for Nike and Procter & Gamble, we’re utilizing the cash from the Eli Lilly trim along with a prior sale of Disney shares to invest in these two stocks. Nike has experienced an uptick of 8% recently, but last week showed some fluctuations. We see this as a chance to reposition ourselves in a company that seems to be turning a corner under CEO Elliott Hill. Although it might feel a bit early to say this—maybe we’re rushing things—it seems the market isn’t fully appreciating his “Win Now” strategy, which emphasizes top-performing sectors across major regions. We had initially acquired Nike on October 31 at around $64 per share.
Now, onto Procter & Gamble: I realize this is a bit unexpected, especially since I mentioned Kimberly-Clark as a stock to monitor just a few days ago. We’re still considering potential risks related to a significant autism lawsuit concerning Tylenol, produced by Kenvue. Earlier this month, Kimberly-Clark also announced they’d be buying Kenvue for nearly $49 billion, which is slated for a spin-off from Johnson & Johnson next year. We’re keeping Kimberly-Clark in mind, but for now, we prefer Procter & Gamble, which we see as more stable and well-managed. Procter & Gamble was a former club name and was held for years until we exited in October 2024 at about $167 per share. They boast an impressive portfolio across various consumer markets.
Despite a drop of around 12% this year, the broader consumer staples sector seems to be out of favor, with investors leaning towards faster-growing stocks in AI. However, some analysts believe that there might soon be a shift back to more reliable companies as 2025 approaches, and Procter & Gamble fits that bill. Historically, it has one of the strongest growth records in its category, reporting its 40th consecutive quarter of organic sales growth recently. It’s on course for its 10th year of escalating core earnings per share. Plus, it has a long-standing tradition of returning cash to shareholders, currently offering an annual dividend yield of about 2.9%, with dividends increased for an impressive 69 years. The company also intends to buy back $5 billion in shares in fiscal 2026. We’re introducing this position with a price target of $165.
The trust is currently long on Eli Lilly, Nike, and Procter & Gamble. For those following our investment updates, remember that trade alerts will come before any transactions made by Jim. After issuing a trade alert, Jim typically waits 45 minutes before proceeding with trades. If he discusses a stock on CNBC, there’s a 72-hour waiting period before executing any trades. This information is tied to our Terms of Use and Privacy Policy, and no guarantees about results or benefits are provided.
