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Aristotle Capital Makes Big Cuts to Elanco Animal Health (ELAN) Position After Q3 Update

Fintel reports that Aristotle Capital Management, LLC has filed a 13G/A form with the SEC disclosing ownership of 1,402,079 shares of Elanco Animal Health Inc (ELAN). This represents 0.3% of the company.

In their previous filing dated February 14, 2022 they reported 29,210,842 shares and 6.17% of the company, a decrease in shares of 95.20% and a decrease in total ownership of 5.87% (calculated as current – previous percent ownership).

Elanco recently provided the following updates:

“Elanco’s Innovation, Portfolio, and Productivity (IPP) strategy and leadership position in the animal health industry sets us up for sustained value creation. While we continued to face topline pressure in the third quarter, we delivered 5% adjusted EPS growth, expanded adjusted EBITDA margin by 120 basis points and reduced gross debt by nearly $170 million,” said Jeff Simmons, Elanco president and chief executive officer. “The Elanco team is focused on execution, advancing the pipeline, driving market share, price growth, and accelerating our systems integration. Environmental conditions have worsened from our assumptions in August causing us to reduce our full year financial outlook to reflect additional foreign exchange headwinds, the global economic slowdown further impacting Europe and U.S. pet retail markets, and the continued impacts of COVID-19 lockdowns in China.

Importantly, our R&D team has made remarkable progress on the pipeline. We see a path toward five products with blockbuster potential approved in the U.S. by the first half of 2024 – Experior, which doubled revenue sequentially from the second quarter, our monoclonal antibody for canine parvovirus, our broad spectrum parasiticide, and our two dermatology assets. As we look to 2023 specifically, in addition to our parvovirus product, we expect approval for multiple innovative pet products, including Bexacat, the first SLGT-2 inhibitor product for feline diabetes and at least three OTC pet retail products.

What are other large shareholders doing?

Dodge & Cox holds 49,206,190 shares representing 10.38% ownership of the company. In it’s prior filing, the firm reported owning 28,587,703 shares, representing an increase of 41.90%. The firm increased its portfolio allocation in ELAN by 47.53% over the last quarter.

Vanguard Group Inc holds 42,476,178 shares representing 8.96% ownership of the company. In it’s prior filing, the firm reported owning 41,452,530 shares, representing an increase of 2.41%. The firm decreased its portfolio allocation in ELAN by 8.38% over the last quarter.

DODGX – Dodge & Cox Stock Fund holds 34,998,000 shares representing 7.38% ownership of the company. In it’s prior filing, the firm reported owning 18,183,700 shares, representing an increase of 48.04%. The firm increased its portfolio allocation in ELAN by 67.92% over the last quarter.

Primecap Management Co/ca/ holds 30,551,465 shares representing 6.44% ownership of the company. In it’s prior filing, the firm reported owning 30,784,292 shares, representing a decrease of 0.76%. The firm decreased its portfolio allocation in ELAN by 11.51% over the last quarter.

Aristotle Capital Management, LLC holds 29,445,021 shares representing 6.21% ownership of the company. In it’s prior filing, the firm reported owning 29,414,637 shares, representing an increase of 0.10%. The firm decreased its portfolio allocation in ELAN by 12.87% over the last quarter.

What is the overall institutional sentiment?

There are 803 funds or institutions reporting positions in Elanco Animal Health Inc. This is a decrease of 54 owner(s) or 6.30%.

Average portfolio weight of all funds dedicated to Elanco Animal Health Inc is 0.2698%, a decrease of 13.3319%. Total shares owned by institutions increased in the last three months by 3.18% to 567,398,010 shares.

Based on this information, institutional sentiment is bearish.

This article originally appeared on Fintel

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