Eli Lilly and Company (NYSE:LLY) Shares Down 2.4% - Should You Sell?

Key Points

• Eli Lilly and Company shares declined by 2.4% to trade at $747.78, with a significant drop in trading volume by 76% compared to average levels.
• HSBC downgraded Eli Lilly's rating from "buy" to "reduce", while other analysts maintain a largely positive outlook with a consensus target price of $1,012.56.
• The company announced a quarterly dividend of $1.50 per share, yielding approximately 0.8%, with a dividend payout ratio of 48.82%.

Eli Lilly and Company (NYSE:LLY - Get Free Report) traded down 2.4% during mid-day trading on Wednesday . The company traded as low as $751.78 and last traded at $747.78. 915,273 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 3,783,397 shares. The stock had previously closed at $765.95.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. HSBC downgraded shares of Eli Lilly and Company from a "buy" rating to a "reduce" rating and cut their price objective for the company from $1,150.00 to $700.00 in a report on Monday, April 28th. Morgan Stanley reissued an "overweight" rating and issued a $1,135.00 price objective (up previously from $1,133.00) on shares of Eli Lilly and Company in a report on Thursday, July 10th. The Goldman Sachs Group raised shares of Eli Lilly and Company from a "neutral" rating to a "buy" rating and cut their price objective for the company from $892.00 to $888.00 in a report on Tuesday, April 8th. Erste Group Bank downgraded shares of Eli Lilly and Company from a "buy" rating to a "hold" rating in a report on Thursday, June 5th. Finally, Wall Street Zen raised shares of Eli Lilly and Company from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and seventeen have given a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,012.56.

Eli Lilly and Company Price Performance

The company has a debt-to-equity ratio of 2.18, a current ratio of 1.37 and a quick ratio of 1.06. The business's fifty day moving average price is $777.42 and its 200-day moving average price is $800.57. The stock has a market capitalization of $704.37 billion, a price-to-earnings ratio of 60.45, a PEG ratio of 1.09 and a beta of 0.44.

Eli Lilly and Company Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 15th will be given a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, August 15th. Eli Lilly and Company's dividend payout ratio (DPR) is presently 48.82%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Knightsbridge Asset Management LLC lifted its position in shares of Eli Lilly and Company by 1.9% during the fourth quarter. Knightsbridge Asset Management LLC now owns 813 shares of the company's stock valued at $628,000 after purchasing an additional 15 shares in the last quarter. LS Investment Advisors LLC raised its position in Eli Lilly and Company by 1.7% in the first quarter. LS Investment Advisors LLC now owns 2,340 shares of the company's stock worth $1,933,000 after acquiring an additional 40 shares during the period. Prism Advisors Inc. bought a new stake in Eli Lilly and Company in the first quarter worth about $207,000. CSM Advisors LLC raised its position in Eli Lilly and Company by 30.6% in the fourth quarter. CSM Advisors LLC now owns 1,045 shares of the company's stock worth $807,000 after acquiring an additional 245 shares during the period. Finally, Bfsg LLC raised its position in Eli Lilly and Company by 1.4% in the first quarter. Bfsg LLC now owns 2,959 shares of the company's stock worth $2,444,000 after acquiring an additional 42 shares during the period. 82.53% of the stock is owned by institutional investors.

About Eli Lilly and Company

Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity.

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