Morgan Stanley Issues Pessimistic Forecast for Elanco Animal Health (NYSE:ELAN) Stock Price

Key Points

• Morgan Stanley lowered Elanco Animal Health’s price target to $25 from $26 while maintaining an “equal weight” rating, implying about 8.9% upside from the prior close.
• Despite mixed analyst views, Elanco carries a “Moderate Buy” consensus rating with an average target of $29.33; the stock recently traded at $22.95.
• Elanco exceeded quarterly expectations, reporting $0.34 in EPS versus a $0.27 estimate and $1.37 billion in revenue, up 10.2% year over year. Insiders purchased more than 63,000 shares over the past 90 days, while institutional investors own 97.48% of the stock.

Elanco Animal Health (NYSE:ELAN - Get Free Report) had its target price lowered by equities research analysts at Morgan Stanley from $26.00 to $25.00 in a report released on Thursday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's target price points to a potential upside of 8.91% from the stock's previous close.

Other equities analysts have also issued research reports about the company. Weiss Ratings raised Elanco Animal Health from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, September 4th. The Goldman Sachs Group began coverage on Elanco Animal Health in a research report on Friday, October 16th. They set a "buy" rating and a $32.00 price objective for the company. UBS Group increased their price objective on shares of Elanco Animal Health from $31.00 to $33.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. KeyCorp reiterated an "overweight" rating on shares of Elanco Animal Health in a research report on Wednesday, September 30th. Finally, Jefferies Financial Group lowered shares of Elanco Animal Health from a "buy" rating to a "hold" rating and cut their price objective for the company from $31.00 to $24.00 in a report on Tuesday, October 20th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Elanco Animal Health presently has an average rating of "Moderate Buy" and a consensus target price of $29.33.

Elanco Animal Health Stock Performance

ELAN stock traded up $0.30 during midday trading on Thursday, reaching $22.95. 1,155,747 shares of the company's stock traded hands, compared to its average volume of 5,571,732. The firm has a market capitalization of $11.47 billion, a PE ratio of -56.07, a price-to-earnings-growth ratio of 2.00 and a beta of 1.70. Elanco Animal Health has a 52 week low of $19.40 and a 52 week high of $27.98. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.10 and a current ratio of 2.05. The company has a 50-day moving average price of $23.16 and a two-hundred day moving average price of $23.82.

Elanco Animal Health (NYSE:ELAN - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.07. Elanco Animal Health had a positive return on equity of 8.13% and a negative net margin of 3.96%. The firm had revenue of $1.37 billion for the quarter, compared to analysts' expectations of $1.31 billion. During the same quarter last year, the firm posted $0.26 EPS. The company's revenue was up 10.2% compared to the same quarter last year. Elanco Animal Health has set its Q3 2026 guidance at 0.190-0.220 EPS and its FY 2026 guidance at 1.100-1.160 EPS. As a group, equities analysts anticipate that Elanco Animal Health will post 1.13 EPS for the current year.

Insider Buying and Selling at Elanco Animal Health

In other Elanco Animal Health news, Director Michael Harrington acquired 5,000 shares of the business's stock in a transaction on Wednesday, August 12th. The stock was bought at an average price of $21.82 per share, for a total transaction of $109,100.00. Following the acquisition, the director owned 131,451 shares in the company, valued at approximately $2,868,260.82. The trade was a 3.95% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Lawrence Kurzius acquired 40,000 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The shares were acquired at an average cost of $23.40 per share, with a total value of $936,000.00. Following the completion of the transaction, the director directly owned 188,647 shares in the company, valued at approximately $4,414,339.80. The trade was a 26.91% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have acquired 63,198 shares of company stock valued at $1,473,109. 1.14% of the stock is owned by insiders.

Hedge Funds Weigh In On Elanco Animal Health

A number of institutional investors and hedge funds have recently made changes to their positions in ELAN. BlackRock Inc. purchased a new stake in Elanco Animal Health during the second quarter worth $1,202,198,000. Primecap Management Co. CA purchased a new stake in Elanco Animal Health during the 2nd quarter worth $1,118,402,000. The Manufacturers Life Insurance Company acquired a new stake in Elanco Animal Health in the second quarter valued at $205,636,000. Sei Investments Co. raised its stake in Elanco Animal Health by 737.5% during the first quarter. Sei Investments Co. now owns 5,650,393 shares of the company's stock worth $135,214,000 after acquiring an additional 4,975,721 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in Elanco Animal Health in the 2nd quarter valued at approximately $83,958,000. 97.48% of the stock is owned by institutional investors and hedge funds.

Elanco Animal Health Company Profile

Elanco Animal Health Incorporated is a global animal health company that develops, manufactures and markets products for pets and food-producing animals. Its portfolio is designed to help prevent and treat disease, control parasites and support the health and productivity of animals.

The company's products include vaccines, parasiticides, antibiotics, nutritional supplements and other prescription and over-the-counter therapies. Its companion animal offerings address conditions such as flea and tick infestations, internal parasites, osteoarthritis and dermatological disorders, while its farm animal products support the health of cattle, poultry, swine and aquaculture species.

Elanco serves customers in markets around the world through relationships with veterinarians, animal owners, livestock producers, retailers and distributors.

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