Eli Lilly and Company (NYSE:LLY) Stock Price Up 1.7% - Should You Buy?

Eli Lilly and Company (NYSE:LLY) saw its stock price increase by 1.7% on Thursday. The stock reached a high of $792.56 before closing at $786.15. In total, approximately 3,476,307 shares were traded, representing an 18% increase in trading volume compared to the average daily volume of 2,956,768 shares. The previous close was reported at $773.29.

Analyst Opinions and Forecasts

Recently, Eli Lilly has grabbed the attention of several Wall Street analysts. For instance, Truist Financial raised its target price for Eli Lilly from $1,000.00 to $1,033.00, classifying the stock with a "buy" rating as of October 10th. Another report from Redburn Atlantic improved its rating for Eli Lilly to "hold" on November 4th. Meanwhile, Cantor Fitzgerald maintained an "overweight" rating with a price target set at $885.00 on September 16th. Citigroup also revised its target upwards from $1,060.00 to $1,250.00 and gave a "buy" rating in a note dated October 25th. Lastly, Bank of America reiterated a "buy" rating with a price target of $997.00 in December. In total, four analysts suggest holding the stock, while eighteen have recommended buying, leading to an overall average rating of "Moderate Buy" with a price target around $1,002.22 according to MarketBeat.com.

Stock Performance Metrics

The stock has a 50-day moving average of $787.35 alongside a 200-day moving average of $861.17. Financial metrics reveal a current ratio of 1.27, a quick ratio of 0.97, and a debt-to-equity ratio of 2.03. Eli Lilly holds a market capitalization of $746.30 billion and a price-to-earnings (P/E) ratio of 84.99, with a P/E/G ratio of 2.99 and a beta of 0.41.

Recent Financial Results

Eli Lilly released its latest quarterly earnings data on October 30th, reporting earnings per share (EPS) of $1.18. This figure fell short of the consensus estimate of $1.52 by $0.34. The company's net margin stands at 20.48%, with a return on equity of 71.08%. Revenue for this quarter totaled $11.44 billion, while analysts had expected approximately $12.09 billion. Notably, this shows a year-over-year increase of 20.4%, with the same quarter last year seeing earnings of only $0.10 EPS. Analysts predict that Eli Lilly will achieve an EPS of 13.18 for the current fiscal year.

Dividend Announcements

Eli Lilly has also announced an increase in its quarterly dividend, to be paid on March 10th, with a dividend amount of $1.50 per share for investors who are on record as of February 14th. This brings the annualized dividend yield to 0.76%, up from the previous quarterly dividend of $1.30. The ex-dividend date is set for February 14th. Currently, Eli Lilly's dividend payout ratio stands at 64.86%.

Stock Buyback Program

Additionally, the company's board approved a share buyback program on December 9th, enabling the repurchase of up to $15.00 billion in shares, which indicates management's belief that the shares are undervalued.

Insider Transactions

In related news, CAO Donald A. Zakrowski sold 900 shares of the company on November 8th, at an average price of $803.38, accounting for a total of $723,042. After this transaction, the chief accounting officer's remaining shares are valued at about $4,402,522.40, reflecting a 14.11% decrease in ownership, as disclosed in a SEC filing.

Institutional Investors' Activities

Several institutional investors have made significant adjustments to their positions in Eli Lilly. Notably, International Assets Investment Management LLC significantly increased its stake by a staggering 87,091.7% in the third quarter, resulting in ownership of 12,463,182 shares valued at over $11 billion. Other firms like Pathway Financial Advisers LLC and Wulff Hansen & CO. also expanded their holdings by almost similar magnitudes. Currently, institutional investors and hedge funds own approximately 82.53% of the company.

Company Overview

Eli Lilly and Company is engaged in discovering, developing, and marketing pharmaceuticals globally. The company offers an array of medications including Basaglar, Humalog, and Trulicity, aimed primarily at managing diabetes and obesity.

Final Thoughts

Given the recent stock activity, positive forecasts from analysts, and the announcement of share buybacks and dividend increases, investors are faced with the question: Should you consider investing in Eli Lilly at this time? While the stock currently has a moderate buy rating, it could be worthwhile to explore other options as signaled by top analysts who have identified alternative stocks that may offer better investment opportunities.

EliLilly, Stock, Investment