Eli Lilly and Company (NYSE:LLY) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Eli Lilly to “Hold”, although broader analyst sentiment remains positive: 24 analysts rate the stock a Buy, with a consensus rating of “Moderate Buy” and an average price target of $1,313.43.
• Eli Lilly reported strong quarterly results, with EPS of $8.38 beating estimates of $6.40 and revenue of $22.97 billion exceeding forecasts. Revenue increased 47.7% year over year, supported by continued demand for its diabetes and obesity medicines.
• The stock’s premium valuation and recent insider selling present potential risks, while pipeline developments—including oral GLP-1 candidate Foundayo and investigational retatrutide—could support future growth.

Eli Lilly and Company (NYSE:LLY - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other equities research analysts also recently issued reports on the stock. Leerink Partners lifted their price target on shares of Eli Lilly and Company from $1,119.00 to $1,232.00 and gave the stock an "outperform" rating in a research note on Thursday, June 25th. JPMorgan Chase & Co. boosted their price objective on shares of Eli Lilly and Company from $1,400.00 to $1,500.00 and gave the stock an "overweight" rating in a report on Monday, September 28th. Guggenheim upped their price objective on shares of Eli Lilly and Company from $1,273.00 to $1,284.00 and gave the company a "buy" rating in a research report on Friday, September 18th. The Goldman Sachs Group raised their target price on Eli Lilly and Company from $1,367.00 to $1,371.00 and gave the company a "buy" rating in a research note on Thursday, September 17th. Finally, Berenberg Bank set a $1,400.00 target price on Eli Lilly and Company and gave the company a "buy" rating in a research note on Tuesday, September 15th. One analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $1,313.43.

Eli Lilly and Company Stock Up 0.5%

NYSE LLY opened at $1,258.04 on Friday. The stock has a market cap of $1.18 trillion, a PE ratio of 39.75, a P/E/G ratio of 1.67 and a beta of 0.46. Eli Lilly and Company has a fifty-two week low of $783.85 and a fifty-two week high of $1,292.65. The business has a 50 day moving average price of $1,180.08 and a two-hundred day moving average price of $1,107.98. The company has a quick ratio of 1.00, a current ratio of 1.35 and a debt-to-equity ratio of 1.41.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $8.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.40 by $1.98. Eli Lilly and Company had a net margin of 33.53% and a return on equity of 97.83%. The company had revenue of $22.97 billion during the quarter, compared to the consensus estimate of $20.82 billion. During the same quarter last year, the company earned $6.31 earnings per share. Eli Lilly and Company's revenue for the quarter was up 47.7% on a year-over-year basis. Eli Lilly and Company has set its FY 2026 guidance at 35.500-36.500 EPS. As a group, sell-side analysts predict that Eli Lilly and Company will post 33.56 EPS for the current fiscal year.

Insider Activity

In related news, CAO Donald A. Zakrowski sold 2,000 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $1,185.01, for a total value of $2,370,020.00. Following the completion of the transaction, the chief accounting officer directly owned 1,526 shares of the company's stock, valued at $1,808,325.26. This represents a 56.72% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Anat Hakim sold 5,000 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $1,190.00, for a total value of $5,950,000.00. Following the completion of the transaction, the executive vice president directly owned 11,875 shares of the company's stock, valued at $14,131,250. This trade represents a 29.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 13,500 shares of company stock valued at $15,958,170. Insiders own 0.14% of the company's stock.

Institutional Trading of Eli Lilly and Company

Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. increased its stake in Eli Lilly and Company by 1.6% during the 2nd quarter. BlackRock Inc. now owns 67,540,400 shares of the company's stock valued at $81,009,981,000 after buying an additional 1,046,558 shares during the period. State Street Corp increased its stake in shares of Eli Lilly and Company by 1.7% during the second quarter. State Street Corp now owns 36,215,754 shares of the company's stock valued at $43,438,262,000 after acquiring an additional 605,752 shares during the period. Bank of America Corp DE acquired a new position in shares of Eli Lilly and Company during the second quarter valued at approximately $13,522,666,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Eli Lilly and Company by 1.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,209,385 shares of the company's stock worth $8,647,153,000 after purchasing an additional 137,364 shares in the last quarter. Finally, Jennison Associates LLC raised its holdings in Eli Lilly and Company by 7.9% during the second quarter. Jennison Associates LLC now owns 5,461,416 shares of the company's stock worth $6,550,587,000 after purchasing an additional 400,538 shares in the last quarter. Institutional investors own 82.53% of the company's stock.

Eli Lilly and Company News Summary

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: European backing for Foundayo: The European Medicines Agency’s advisory committee issued a positive recommendation for Foundayo (orforglipron), Lilly’s once-daily oral GLP-1 treatment for obesity and type 2 diabetes. Final approval from the European Commission is still required, but the decision supports Lilly’s strategy to expand beyond injectable drugs and could broaden access to the rapidly growing weight-loss market. Eli Lilly’s GLP-1 Pill Wins Key European Backing for Obesity and Diabetes
• Positive Sentiment: Additional obesity drugs could extend growth: Analysts and market commentators highlighted Foundayo, investigational retatrutide and other newer medicines as potential drivers of Lilly’s next growth phase, reducing dependence on Zepbound. Retatrutide remains in development, so its commercial contribution depends on clinical results and future regulatory approval. Forget Zepbound: 3 Newer Drugs That Could Power Eli Lilly’s Next Leg Higher
• Positive Sentiment: Pipeline diversification is improving: New Omvoh analyses showed meaningful one-year corticosteroid-free disease control in ulcerative colitis and Crohn’s disease, including patients who had failed prior biologics. Lilly also announced oncology research collaborations, adding potential long-term pipeline value beyond its GLP-1 franchise. New Omvoh Composite Outcomes Data
• Neutral Sentiment: Valuation remains a risk: Lilly’s exceptional obesity-driven growth and strong recent performance have pushed investor expectations high. Articles questioned whether future cash-flow growth is sufficient to justify the stock’s premium valuation, increasing the possibility of volatility if results or guidance disappoint. Eli Lilly’s Growth Is Exceptional. Is Its Valuation Asking Too Much?
• Negative Sentiment: Large shareholder sale adds a technical overhang: The Lilly Foundation is selling approximately 300,000 shares valued near $347 million. Reports indicate the transaction is not tied to concerns about Lilly’s business outlook, but a sizable sale can still raise short-term supply and sentiment concerns. Eli Lilly’s Biggest Shareholder Is Selling $347 Million of Stock

Eli Lilly and Company Company Profile

Eli Lilly and Company is a global pharmaceutical company headquartered in Indianapolis, Indiana. Founded in 1876 by Colonel Eli Lilly, the company researches, develops, manufactures and markets medicines for a range of conditions, including diabetes, obesity, cancer, immunological disorders, neurological diseases and pain.

Its products include Mounjaro and Zepbound, which contain tirzepatide and are used for type 2 diabetes and chronic weight management, respectively. Other key medicines include Trulicity for diabetes, Verzenio for certain breast cancers, Taltz for inflammatory and autoimmune conditions, Humalog insulin, and Kisunla for early symptomatic Alzheimer's disease.

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