Eli Lilly and Company (NYSE:LLY) Stock Dropped to "Hold" by China Merchants Securities

Key Points

• China Merchants Securities downgraded Eli Lilly from “buy” to “hold.” Analyst sentiment overall remains positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $1,416.64.
• Lilly beat quarterly estimates, reporting EPS of $7.48 versus $5.71 expected and revenue of $24.40 billion versus $22.58 billion; revenue rose 38.6% year over year.
• The stock opened at $1,433.34, near its 12-month high of $1,460. Recent company developments include a planned $3.5 billion Pennsylvania manufacturing facility, while potential U.S. drug-price negotiations pose a revenue risk.

Eli Lilly and Company (NYSE:LLY - Get Free Report) was downgraded by China Merchants Securities from a "buy" rating to a "hold" rating in a report issued on Thursday, FinViz reports.

Other equities research analysts also recently issued reports about the stock. Royal Bank Of Canada lifted their price target on shares of Eli Lilly and Company from $1,500.00 to $1,600.00 and gave the company an "outperform" rating in a research note on Friday, October 30th. Scotiabank raised their price objective on shares of Eli Lilly and Company from $1,300.00 to $1,605.00 and gave the stock a "sector outperform" rating in a report on Friday, October 30th. JPMorgan Chase & Co. increased their price target on Eli Lilly and Company from $1,500.00 to $1,650.00 and gave the stock an "overweight" rating in a research note on Friday, October 30th. The Goldman Sachs Group restated a "buy" rating and set a $1,413.00 target price on shares of Eli Lilly and Company in a research report on Tuesday, October 20th. Finally, Guggenheim upped 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 report on Friday, September 18th. One research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Eli Lilly and Company currently has an average rating of "Moderate Buy" and a consensus target price of $1,416.64.

Eli Lilly and Company Stock Performance

NYSE LLY opened at $1,433.34 on Thursday. The firm has a 50-day moving average price of $1,236.58 and a two-hundred day moving average price of $1,108.27. Eli Lilly and Company has a 12-month low of $850.51 and a 12-month high of $1,460.00. The company has a market capitalization of $1.35 trillion, a P/E ratio of 44.99, a P/E/G ratio of 1.72 and a beta of 0.40. The company has a quick ratio of 1.00, a current ratio of 1.39 and a debt-to-equity ratio of 1.17.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $7.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.71 by $1.77. Eli Lilly and Company had a return on equity of 86.76% and a net margin of 31.90%. The business had revenue of $24.40 billion for the quarter, compared to the consensus estimate of $22.58 billion. During the same quarter in the prior year, the business posted $7.02 earnings per share. The firm's quarterly revenue was up 38.6% compared to the same quarter last year. Analysts anticipate that Eli Lilly and Company will post 35.70 earnings per share for the current year.

Insiders Place Their Bets

In other Eli Lilly and Company news, EVP Patrik Jonsson sold 6,500 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $1,175.10, for a total transaction of $7,638,150.00. Following the completion of the sale, the executive vice president directly owned 54,147 shares in the company, valued at $63,628,139.70. This represents a 10.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Anat Hakim sold 5,000 shares of the firm's stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $1,402.52, for a total value of $7,012,600.00. Following the transaction, the executive vice president directly owned 4,137 shares in the company, valued at $5,802,225.24. This trade represents a 54.72% 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. 0.14% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Eli Lilly and Company

Institutional investors have recently bought and sold shares of the stock. Coastal Bridge Advisors LLC purchased a new stake in Eli Lilly and Company during the second quarter valued at approximately $2,959,000. Birinyi Associates Inc. raised its holdings in Eli Lilly and Company by 32.6% in the 3rd quarter. Birinyi Associates Inc. now owns 1,460 shares of the company's stock worth $1,689,000 after purchasing an additional 359 shares during the period. Mosaic Family Wealth Partners LLC lifted its position in Eli Lilly and Company by 70.6% during the second quarter. Mosaic Family Wealth Partners LLC now owns 3,455 shares of the company's stock valued at $4,144,000 after purchasing an additional 1,430 shares in the last quarter. Canton Hathaway LLC grew its stake in shares of Eli Lilly and Company by 160.4% during the 3rd quarter. Canton Hathaway LLC now owns 2,273 shares of the company's stock valued at $2,630,000 after acquiring an additional 1,400 shares during the period. Finally, Heritage Investors Management Corp raised its stake in Eli Lilly and Company by 6.5% during the 3rd quarter. Heritage Investors Management Corp now owns 11,774 shares of the company's stock worth $13,624,000 after acquiring an additional 718 shares during the period. 82.53% of the stock is currently owned by hedge funds and other institutional investors.

Key Eli Lilly and Company News

These are some of the LLY news items that stood out recently:

• Positive Sentiment: Lilly broke ground on a $3.5 billion Pennsylvania facility to make injectable medicines, including next-generation candidate retatrutide. The investment could expand manufacturing capacity for future demand and is expected to create 850 permanent jobs, though the benefits will take time to materialize. Lilly facility announcement
• Positive Sentiment: New trial coverage points to broader potential for Lilly’s GLP-1 medicines: orforglipron reportedly showed promise for osteoarthritic knee pain, and Foundayo data indicated improvement in sleep apnea. These possible benefits could expand the drugs’ addressable markets, but further development and evidence remain important. Trial results coverage
• Negative Sentiment: Potential U.S. drug-price negotiations could pressure Lilly revenue, according to recent reporting. This policy risk may weigh on expectations even as the company expands its obesity portfolio. Drug-pricing risk report

Eli Lilly and Company Company Profile

Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures and markets medicines for people and animals. Its work spans areas including diabetes and obesity, cancer, immunology, neuroscience and pain management. The company's medicines include treatments for diabetes and obesity, such as Mounjaro and Zepbound, as well as products for cancer and other conditions. Lilly also conducts research into new medicines and invests in the development of treatments across its therapeutic areas.

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