Eli Lilly and Company (NYSE:LLY) Stock Price Down 3.1% - Here's What Happened

Eli Lilly and Company (NYSE:LLY) experienced a decline of 3.1% in stock price on Monday. The shares fell to a low of $841.49 and ended the day at $844.82. During trading, around 3,219,625 shares were exchanged, which marks a 21% decrease compared to the average daily volume of 4,056,943 shares. The previous closing price was $871.86.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Bank of America maintained a "buy" rating with a price target of $997.00 in a research report issued on December 10th. Similarly, Wells Fargo lowered their price goal from $1,000.00 to $970.00 but kept an "overweight" rating on the shares. Truist Financial increased their target from $1,029.00 to $1,038.00, also giving a "buy" rating. On the other hand, Redburn Atlantic upgraded the stock to a "hold" rating, while StockNews.com moved it from a "hold" to a "buy" rating. Currently, four analysts recommend holding the stock, whereas eighteen are in favor of buying, which positions the stock with a consensus rating of "Moderate Buy" and an average target price of $997.50.

Eli Lilly and Company Stock Overview

The stock's fifty-day moving average sits at $796.41, and the two-hundred-day moving average is $845.73. Eli Lilly boasts a market cap of $822.77 billion, with a price-to-earnings ratio of 74.01 and a price-to-earnings-growth ratio of 1.35. Furthermore, the company has a beta of 0.42, a debt-to-equity ratio of 2.03, a current ratio of 1.27, and a quick ratio of 0.97.

Earnings Results and Dividend Increase

Eli Lilly's latest earnings report was released on February 6th, indicating earnings per share (EPS) of $5.32, which missed analysts' expectations of $5.45 by $0.13. The company displayed a return on equity of 86.26% and a net margin of 23.51%. Future forecasts estimate that Eli Lilly will achieve an EPS of 23.48 for the fiscal year.

On another note, Eli Lilly recently announced an increase in its quarterly dividend, which will be paid on March 10th. The $1.50 dividend will be available to investors who hold stock as of February 14th, up from the previous quarterly amount of $1.30. This translates into an annualized dividend of $6.00, resulting in a dividend yield of 0.69%. Additionally, the company’s current dividend payout ratio stands at 51.24%.

Share Buyback Program

The board of Eli Lilly has approved a share buyback program, allowing the company to repurchase up to $15.00 billion worth of its outstanding shares. This program signifies the board's belief that the company’s stock is undervalued, allowing for the repurchase of approximately 2% of its shares through open market transactions.

Institutional Investor Activity

Recently, several institutional investors have adjusted their positions in Eli Lilly. James Hambro & Partners LLP increased its stake by 3.7% in the third quarter, holding 340 shares worth around $301,000. Inscription Capital LLC raised its stakes by 1% during the same period, owning 1,222 shares valued at about $1,083,000. Additionally, other firms such as FWG Holdings LLC, Morling Financial Advisors LLC, and Prestige Wealth Management Group LLC also made slight increases in their holdings. Collectively, institutional investors now own approximately 82.53% of Eli Lilly’s stock.

Company Profile

Eli Lilly and Company is engaged in discovering, developing, and marketing human pharmaceuticals across the globe. The company’s product range includes various medications for diabetes and obesity like Basaglar, Humalog, Jardiance, Mounjaro, and Trulicity.

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