We’re taking a nearly 300% profit on a hot drug stock — adhering to an investing rule to live by
Shortly after the opening bell, we’ll be selling 10 shares of Eli Lilly at roughly $958 each. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 100 shares of LLY, decreasing its weighting to 2.85% from about 3.13%. Now that we are no longer restricted, we are selling some Eli Lilly shares. We downgraded Lilly stock to our 2 rating last Tuesday on its rebound to a new all-time high. We previously upgraded Lilly to our buy-equivalent 1 rating in July in the mid- $800s when the stock fell on concerns about competition in the fast-growing GLP-1 class of diabetes (Mounjaro) and weight-loss (Zepbound) drugs. Those worries quickly proved to be overbought after its second-quarter earnings report , which cemented its GLP-1 leadership through improving supply. LLY 1Y mountain Eli Lilly YTD This trim, however, is all about discipline. We have let the stock run for almost one full year. Our previous sale was at $591 in September 2023. With Lilly shares up more than 60% since then, we don’t want to catch ourselves being too greedy. We’ll realize a fantastic gain of 288% on stock purchased in January 2022. (Jim Cramer’s Charitable Trust is long LLY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will 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 charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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