Elanco Animal Health (NYSE:ELAN) Stock Price Expected to Rise, KeyCorp Analyst Says

Key Points

• KeyCorp raised Elanco’s price target to $30 from $29 and maintained an “overweight” rating, implying 24.49% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $28.82.
• Elanco’s second-quarter results exceeded expectations, with revenue up 10.2% year over year to $1.37 billion and EPS of $0.34 versus the $0.27 consensus. The company also raised its 2026 adjusted EPS guidance to $1.10–$1.16.
• Despite the positive results, shares fell 8.1% to $24.10 during Thursday trading. Reported profitability remains pressured, with a negative net margin, although insider purchases and increased institutional ownership provide additional investor context.

Elanco Animal Health (NYSE:ELAN - Get Free Report) had its target price increased by equities research analysts at KeyCorp from $29.00 to $30.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. KeyCorp's price target points to a potential upside of 24.49% from the stock's previous close.

A number of other analysts have also commented on the company. Morgan Stanley lifted their target price on Elanco Animal Health from $23.00 to $26.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 22nd. Citigroup lifted their price objective on Elanco Animal Health from $30.00 to $31.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Wall Street Zen lowered Elanco Animal Health from a "strong-buy" rating to a "buy" rating in a research report on Sunday, May 24th. Weiss Ratings upgraded shares of Elanco Animal Health from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, July 31st. Finally, Piper Sandler reissued an "overweight" rating on shares of Elanco Animal Health in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Elanco Animal Health presently has an average rating of "Moderate Buy" and an average target price of $28.82.

Elanco Animal Health Trading Down 8.1%

Shares of ELAN stock traded down $2.12 during mid-day trading on Thursday, reaching $24.10. The stock had a trading volume of 5,500,356 shares, compared to its average volume of 5,381,625. The stock's 50-day moving average price is $24.73 and its two-hundred day moving average price is $24.10. The firm has a market capitalization of $12.04 billion, a PE ratio of -48.38, a price-to-earnings-growth ratio of 1.67 and a beta of 1.67. The company has a current ratio of 2.16, a quick ratio of 1.12 and a debt-to-equity ratio of 0.60. Elanco Animal Health has a 52-week low of $15.50 and a 52-week high of $27.98.

Elanco Animal Health (NYSE:ELAN - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.34 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.07. Elanco Animal Health had a negative net margin of 4.95% and a positive return on equity of 7.42%. The firm had revenue of $1.37 billion for the quarter, compared to analysts' expectations of $1.31 billion. During the same quarter in the previous year, the business posted $0.26 EPS. The company's quarterly revenue was up 10.2% on a year-over-year basis. 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. Equities analysts expect that Elanco Animal Health will post 1.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Rajeev A. Modi bought 4,911 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was purchased at an average price of $20.35 per share, for a total transaction of $99,938.85. Following the completion of the transaction, the insider owned 160,812 shares in the company, valued at $3,272,524.20. The trade was a 3.15% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Jeffrey N. Simmons acquired 4,971 shares of the company's stock in a transaction on Friday, May 15th. The shares were bought at an average cost of $20.09 per share, with a total value of $99,867.39. Following the acquisition, the chief executive officer directly owned 171,971 shares in the company, valued at approximately $3,454,897.39. The trade was a 2.98% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 1.14% of the company's stock.

Institutional Trading of Elanco Animal Health

Several hedge funds and other institutional investors have recently bought and sold shares of ELAN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in Elanco Animal Health in the 1st quarter worth about $2,065,000. Goldman Sachs Group Inc. boosted its position in shares of Elanco Animal Health by 104.5% during the first quarter. Goldman Sachs Group Inc. now owns 4,787,394 shares of the company's stock valued at $50,268,000 after buying an additional 2,445,872 shares during the period. Empowered Funds LLC grew its stake in shares of Elanco Animal Health by 35.2% during the first quarter. Empowered Funds LLC now owns 15,835 shares of the company's stock valued at $166,000 after buying an additional 4,121 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Elanco Animal Health by 4.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,793,337 shares of the company's stock worth $18,830,000 after buying an additional 76,408 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of Elanco Animal Health by 2,006.9% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 310,383 shares of the company's stock worth $4,432,000 after acquiring an additional 295,651 shares during the last quarter. Hedge funds and other institutional investors own 97.48% of the company's stock.

Elanco Animal Health News Roundup

Here are the key news stories impacting Elanco Animal Health this week:

• Positive Sentiment: Second-quarter results exceeded expectations: Revenue increased 10% year over year to $1.368 billion, ahead of the $1.31 billion consensus estimate. Adjusted EPS was $0.34 versus expectations of $0.27 and $0.26 in the year-ago quarter. Organic constant-currency growth was 8%. Elanco Animal Health Reports Second Quarter 2026 Results
• Positive Sentiment: Full-year guidance was raised: Elanco now expects 2026 revenue of $5.09 billion to $5.14 billion, adjusted EBITDA of $1.01 billion to $1.035 billion, and adjusted EPS of $1.10 to $1.16. The EPS range is above the $1.07 analyst consensus, with midpoint adjusted EPS growth of approximately 20% year over year. Elanco Lifts Outlook as 2Q Profit, Revenue Rise
• Positive Sentiment: Innovation products are gaining traction: Management raised its 2026 innovation-revenue target to $1.25 billion, while Zenrelia reached “blockbuster” status. This supports expectations for continued growth from newer products.
• Positive Sentiment: Balance-sheet targets improved: Elanco expects its year-end net leverage ratio to decline to approximately 3.0 times adjusted EBITDA, compared with 3.1 times at the end of the quarter.
• Neutral Sentiment: Third-quarter guidance was broadly in line with estimates: Adjusted EPS is projected at $0.19 to $0.22 and revenue at approximately $1.2 billion, limiting the immediate upside from the near-term forecast.
• Negative Sentiment: Reported profitability remains pressured: GAAP net income was $54 million, or $0.11 per share, and the company continued to report a negative net margin, highlighting the gap between adjusted and reported earnings.

Elanco Animal Health Company Profile

Elanco Animal Health Inc is a global leader in animal health dedicated to improving food and companion animal well-being. The company develops, manufactures and markets a range of products, including parasiticides, vaccines, antibiotics and feed additives designed to prevent and treat disease in livestock and pets. Elanco's portfolio spans both food-producing animals—such as cattle, swine, poultry and aquaculture—and companion animals, with offerings that support parasite control, pain management and infectious disease prevention.

Originally founded as the animal health division of Eli Lilly and Company in the mid-20th century, Elanco was spun off into an independent publicly traded company in 2018.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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