Eli Lilly and Company (NYSE:LLY) Earns "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed an “Outperform” rating on Eli Lilly and set a $1,500 price target, implying 27.74% upside. Overall, analysts rate the stock a “Moderate Buy,” with a consensus target of $1,313.43.
• Eli Lilly reported strong quarterly results, earning $8.38 per share versus the $6.40 consensus estimate, while revenue rose 47.7% year over year to $22.97 billion.
• The stock recently traded near $1,174, with a market capitalization of approximately $1.11 trillion. Insiders sold about $16 million of shares over the past three months, while institutional investors own 82.53% of the company.

Eli Lilly and Company (NYSE:LLY - Get Free Report)'s stock had its "outperform" rating reissued by Royal Bank Of Canada in a research report issued to clients and investors on Monday, Marketbeat.com reports. They presently have a $1,500.00 target price on the stock. Royal Bank Of Canada's target price would indicate a potential upside of 27.74% from the company's current price.

Several other equities analysts have also recently commented on LLY. Guggenheim lifted their target price on shares of Eli Lilly and Company from $1,273.00 to $1,284.00 and gave the stock a "buy" rating in a research report on Friday, September 18th. UBS Group set a $1,376.00 target price on shares of Eli Lilly and Company in a research report on Friday, August 7th. Truist Financial lifted their target price on shares of Eli Lilly and Company from $1,370.00 to $1,376.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Sanford C. Bernstein lifted their target price on shares of Eli Lilly and Company from $1,300.00 to $1,385.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 14th. Finally, Leerink Partners lifted their target price 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 report on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Eli Lilly and Company currently has an average rating of "Moderate Buy" and a consensus price target of $1,313.43.

Eli Lilly and Company Stock Performance

Shares of Eli Lilly and Company stock traded down $5.04 during mid-day trading on Monday, hitting $1,174.23. 502,023 shares of the stock were exchanged, compared to its average volume of 2,953,961. Eli Lilly and Company has a 12 month low of $783.85 and a 12 month high of $1,292.65. The company has a 50-day simple moving average of $1,174.35 and a 200 day simple moving average of $1,098.33. The company has a debt-to-equity ratio of 1.41, a quick ratio of 1.00 and a current ratio of 1.35. The company has a market capitalization of $1.11 trillion, a P/E ratio of 39.40, a P/E/G ratio of 1.47 and a beta of 0.46.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $8.38 EPS for the quarter, topping 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 firm had revenue of $22.97 billion for the quarter, compared to analysts' expectations of $20.82 billion. During the same quarter last year, the firm earned $6.31 EPS. The company's quarterly revenue was up 47.7% compared to the same quarter last year. Eli Lilly and Company has set its FY 2026 guidance at 35.500-36.500 EPS. Sell-side analysts anticipate that Eli Lilly and Company will post 36.19 earnings per share for the current fiscal year.

Insider Activity

In other news, CAO Donald Zakrowski sold 2,000 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $1,185.01, for a total transaction of $2,370,020.00. Following the completion of the transaction, the chief accounting officer directly owned 1,526 shares in the company, valued at $1,808,325.26. The trade was a 56.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Anat Hakim sold 5,000 shares of the business's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $1,190.00, for a total transaction of $5,950,000.00. Following the transaction, the executive vice president 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 13,500 shares of company stock worth $15,958,170 in the last three months. Corporate insiders own 0.14% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Roan Capital Partners raised its position in shares of Eli Lilly and Company by 19.9% in the third quarter. Roan Capital Partners now owns 235 shares of the company's stock valued at $272,000 after buying an additional 39 shares during the last quarter. Armstrong Advisory Group Inc. raised its position in shares of Eli Lilly and Company by 1.5% in the third quarter. Armstrong Advisory Group Inc. now owns 6,825 shares of the company's stock valued at $7,897,000 after buying an additional 102 shares during the last quarter. Oak Grove Capital LLC raised its position in shares of Eli Lilly and Company by 61.2% in the third quarter. Oak Grove Capital LLC now owns 39,238 shares of the company's stock valued at $45,402,000 after buying an additional 14,902 shares during the last quarter. Gilpin Wealth Management LLC raised its position in shares of Eli Lilly and Company by 82.7% in the third quarter. Gilpin Wealth Management LLC now owns 95 shares of the company's stock valued at $110,000 after buying an additional 43 shares during the last quarter. Finally, jvl associates llc raised its position in shares of Eli Lilly and Company by 2.9% in the third quarter. jvl associates llc now owns 674 shares of the company's stock valued at $780,000 after buying an additional 19 shares during the last quarter. 82.53% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Eli Lilly and Company

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

• Positive Sentiment: Royal Bank of Canada reaffirmed its “Outperform” rating and set a $1,500 price target, implying substantial upside from recent trading levels. The endorsement supports the view that Lilly’s earnings growth and obesity-drug opportunity remain attractive. Eli Lilly and Company's Outperform Rating Reiterated at Royal Bank Of Canada
• Positive Sentiment: Analysts and investors continue to focus on Lilly’s expanding obesity-treatment pipeline. A reported drug combination produced significantly greater weight loss than Zepbound alone, potentially pointing to stronger future efficacy and additional commercial opportunities. Drug Combination Generated More Weight Loss Than Zepbound
• Neutral Sentiment: The combination’s higher discontinuation rate is a notable limitation. While the stronger weight-loss results are encouraging, Lilly may need to improve tolerability and patient persistence before the approach can materially increase revenue or valuation. Drug Combination Results and Discontinuation Rates
• Negative Sentiment: Lilly’s recent roughly 8% retreat appears linked mainly to profit-taking and concerns about taking profits ahead of 2027, rather than weakening demand. Copycat versions of retatrutide and other competitive threats could nevertheless pressure future pricing, market share, or investor sentiment. Eli Lilly Takes on Retatrutide Copycats

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.