$Eli Lilly(LLY)$ $Comcast(CMCSA)$ $iShares MSCI EAFE ETF(EFA)$ $iShares TIPS Bond ETF(TIP)$ $Smurfit WestRock PLC(SW)$
Hey everyone, I often explore stocks that major institutions are buying, but today, we’re flipping the script. Instead of looking at purchases, we’re diving into five stocks that big institutions are selling. And what better institution to focus on than the infamous BlackRock—the largest asset management company in the world, managing trillions of dollars in assets. Their market influence is massive, so when they sell, it’s worth paying attention.
In this articles, we’ll examine BlackRock’s top five largest sales from their most recent SEC filings. I’ll go through each stock one by one, share my thoughts on these sales, and let you know whether I agree or disagree with their moves. It’s going to be a fun and insightful discussion.
Without further ado, let’s jump straight into the list. We’ll be counting down from the smallest to the largest sales as a percentage. Spoiler alert: the last two were almost complete exits.
Stock #1 Eli Lilly
First on the list is a relatively small trim of around 2% in holdings of the popular biotech company Eli Lilly (ticker: LLY). Even after this reduction, BlackRock still holds over $57 billion worth of this stock in their portfolio.
I mostly agree with this move, as it seems like a strategic profit-taking decision. Eli Lilly’s stock has skyrocketed by over 400% in the past five years, even after a recent dip. While there’s a lot to admire about the company—like its successful acquisitions, new product launches, and promising Phase 3 trials—I personally haven’t invested in it for three key reasons:
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Better Alternatives: I prefer biotech stocks like Pfizer, AbbVie, Merck, and Bristol Myers Squibb. These companies are not only larger but also trade at much cheaper valuations.
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Expensive Valuation: Eli Lilly trades at 100–200% higher price-to-earnings ratios compared to its peers. My preferred stocks are significantly cheaper by comparison.
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Lower Dividend Yield: While my picks, such as Bristol Myers Squibb and Pfizer, yield over 4% and 6% respectively, Eli Lilly offers less than 1%, which doesn’t align with my investment strategy.
That said, Eli Lilly is undeniably a strong growth stock. Analysts expect its sales to nearly double and EPS to triple in the coming years, which is incredible for the 12th largest pharmaceutical company in the world. I can see why many choose to invest in it.
For BlackRock, this small reduction in holdings appears to be a smart move, especially given the recent dip in the stock’s price. It wouldn’t surprise me if they resumed buying later this year if the valuation becomes more attractive. Now, let’s move on to the next stock on the list!
Stock #2 Comcast
Next up, we have Comcast (ticker: CMCSA), a media giant that BlackRock trimmed by about 6% last quarter, leaving approximately $12 billion worth in their portfolio. This move is a bit of a mixed bag, depending on how you view the company’s recent performance and prospects.
On one hand, Comcast’s stock has taken a significant hit, dropping over 40% from its peak. However, this decline followed a massive surge during the pandemic, fueled by the streaming boom and the launch of their competing platform, Peacock. Comcast also owns major media assets like NBC and Universal, with the latter achieving the top market share among North American film studios in 2023—beating Disney, Warner Bros., and Paramount. These assets are key drivers of Peacock’s content library.
Additionally, Comcast has a growing theme park division, including Universal Studios Hollywood and Universal Orlando, which have gained traction thanks to initiatives like the Nintendo World partnership. Despite a portion of their business still tied to cable TV, Comcast plans to spin off that segment into a separate entity, leaving behind a more focused, growth-oriented portfolio centered on streaming, movie studios, and theme parks.
From a valuation perspective, Comcast appears attractive, trading near decade lows and at a forward P/E ratio that’s 20–50% cheaper than its sector. That said, I personally wouldn’t invest in Comcast—not because it’s a bad stock, but because there are more compelling options available.
For instance, Disney offers stronger brands, while companies like Amazon, Apple, and Google provide diversified exposure to video streaming alongside massive profitability and leadership in areas like AI, e-commerce, and cloud computing. Google’s YouTube, in particular, garners more viewership than any other platform, making it a dominant player in the space. These companies are not only safer bets but also bring added excitement due to their broader innovation and market reach.
That said, I understand why some investors might find Comcast appealing. It’s a deep-value stock with a compelling package of assets and even offers a decent dividend. However, the fate of that dividend after the cable TV spin-off remains uncertain. Let’s move on to Sale #3!
Stock #3 EFA iShares MSCI ETF
This one is a bit different—it’s an ETF, specifically the iShares EFA ETF, which BlackRock sold nearly 20% of last quarter. That’s a significant reduction, cutting about a fifth of their holdings and leaving around $7 billion invested in the fund.
I don’t have much to say about this move, mainly because I’m not a big fan of this ETFs myself. I only own one in my portfolio—a broad-based dividend ETF—and prefer to focus on individual stocks for better potential returns.
That said, this ETF is issued by BlackRock (which owns the iShares brand) and tracks the EAFE Index—representing Europe, Australia, Asia, and the Far East. It includes a large basket of stocks from various countries, such as Japan, Australia, South Korea, and even a small allocation to China.
The ETF is broadly diversified, with its top 10 holdings making up less than 14% of the portfolio. These holdings include notable companies like ASML, Nestlé, and biotechs like Novo Nordisk, AstraZeneca, Roche, and Novartis. It also covers industries like automotive (Toyota, Ferrari, Mitsubishi), technology (SoftBank), and energy (Shell).
For investors seeking broad international exposure, this ETF could be worth considering. However, I prefer handpicking individual stocks, as I believe it allows for better returns over time. For instance, this ETF has only delivered a 24% total return over the past 10 years, which I find extremely underwhelming. That’s the kind of gain I’d aim to achieve annually, not over a decade.
In this case, I understand why BlackRock reduced their position—it’s just not a strong performer. On to Sale #4!
Stock #4 iShares TIPS Bond ETF
For the fourth sale, we see another significant reduction, this time involving an ETF. BlackRock sold over 78% of their holdings in the iShares TIPS ETF (ticker: TIP), leaving less than $1 billion in their portfolio. This represents a massive decrease that seems to have come somewhat unexpectedly.
What makes this ETF slightly more interesting than others is its unique purpose: it’s a bonds ETF designed as an inflation hedge. It primarily invests in Treasury Inflation-Protected Securities (TIPS), which are U.S. government bonds whose principal value adjusts with changes in the Consumer Price Index (CPI) or inflation.
This feature made the ETF appealing during the pandemic when inflation soared, leading to an initial rise in its value. However, as the Federal Reserve aggressively raised interest rates to combat inflation, the ETF’s value dropped sharply, declining by about 20%. Over the past decade, it has actually posted a negative return, which is largely due to the relationship between interest rates and bonds: when rates rise, older bonds with lower yields become less attractive, causing their value to drop.
While this ETF may be useful for those looking to hedge against inflation or attempt to time bond market fluctuations, it’s not a compelling option for long-term investors like me. The performance and volatility make it less appealing compared to other investment opportunities. Now, let’s move on to Sale #5, which is even more dramatic!
Stock #5 WestRock / (SW) Smurfit WestRock
Finally, we come to Sale #5, the only 100% reduction in BlackRock’s portfolio, involving WestRock (ticker: WRK), a paper and packaging company. However, there’s a significant asterisk to this “sale.”
WestRock recently merged with Smurfit Kappa, creating a new, larger entity called Smurfit WestRock. As a result, the WestRock stock likely converted into shares of this new publicly traded company, which BlackRock presumably holds now. That said, there’s another layer to this story. BlackRock had already been reducing their position in WestRock ahead of the merger, selling over 4 million shares in the three quarters prior.
Was this a good move leading up to the merger? I actually think it might have been. While the merger makes the combined company more attractive in some ways, there are important considerations to keep in mind. Together, the two companies generated around $34 billion in revenue and $5 billion in profits over the past year, making them the largest publicly traded packaging company in the world. They also gain significant synergies from combining their strengths—WestRock was well-established in the American market, while Smurfit Kappa excelled in Europe. Now, as a unified entity, they’re positioned to expand even further globally.
The paper and packaging market is unlikely to disappear anytime soon, especially with the continued rise of e-commerce and globalization, which should drive long-term demand. However, this industry is highly cyclical and heavily influenced by macroeconomic trends, which can lead to significant fluctuations in performance.
This cyclicality is evident in WestRock’s recent stock performance. The past year saw a major upturn, leaving the valuation relatively high—around 60% more expensive than the sector average. This likely prompted BlackRock to trim their position while the stock was riding high.
Although the company offers a dividend, it’s relatively modest at around 2%, which doesn’t make it particularly appealing for income-focused investors. For those seeking dividend plays in this sector, International Paper offers a slightly better yield at over 3%, though it faces similar valuation concerns due to its recent stock price rise.
In my view, while the Smurfit WestRock merger has potential, there are plenty of other dividend value stocks that look far more attractive right now. I’ve covered several of them in recent article, as I believe this is a great time to explore better opportunities in that space.
Conclusion
So, there you have it, folks—BlackRock's recent sales activity. Nothing too shocking overall, but I’d say I generally agree with the moves they made. What about you? Do you agree with their decisions, or do you own any of these stocks? I’d love to hear your thoughts in the comments!
@Daily_Discussion @TigerPM @TigerObserver @Tiger_comments @TigerClub
Disclaimer: Before we dive into this article, I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.
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