Eli Lilly and Company (NYSE:LLY) Shares Gap Down - What's Next?

Key Points

• Eli Lilly and Company shares saw a significant drop, opening at $774.50 after a previous close of $808.11, and traded at $769.92 with over 1.6 million shares exchanged.
• Analysts have mixed opinions on the stock, with Morgan Stanley maintaining an "overweight" rating and a target price of $1,135, while HSBC downgraded it to "reduce" with a target of $700.
• The company recently announced a quarterly dividend of $1.50, equating to an annualized yield of 0.78%, with a dividend payout ratio of 48.82%.

Eli Lilly and Company (NYSE:LLY - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $808.11, but opened at $774.50. Eli Lilly and Company shares last traded at $769.92, with a volume of 1,656,904 shares.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Morgan Stanley reiterated an "overweight" rating and issued a $1,135.00 price objective (up from $1,133.00) on shares of Eli Lilly and Company in a research report on Thursday, July 10th. HSBC downgraded shares of Eli Lilly and Company from a "buy" rating to a "reduce" rating and lowered their price objective for the company from $1,150.00 to $700.00 in a research report on Monday, April 28th. UBS Group decreased their price objective on shares of Eli Lilly and Company from $1,100.00 to $1,050.00 and set a "buy" rating for the company in a report on Friday, May 2nd. Guggenheim lifted their price objective on shares of Eli Lilly and Company from $936.00 to $942.00 and gave the company a "buy" rating in a research note on Friday, July 11th. Finally, The Goldman Sachs Group upgraded shares of Eli Lilly and Company from a "neutral" rating to a "buy" rating and reduced their price objective for the company from $892.00 to $888.00 in a research report on Tuesday, April 8th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and seventeen have issued a buy rating to the stock. Based on data from MarketBeat.com, Eli Lilly and Company has an average rating of "Moderate Buy" and a consensus target price of $1,012.56.

Eli Lilly and Company Stock Performance

The company has a market capitalization of $725.83 billion, a P/E ratio of 62.33, a PEG ratio of 1.18 and a beta of 0.40. The company has a quick ratio of 1.06, a current ratio of 1.37 and a debt-to-equity ratio of 2.18. The stock has a fifty day simple moving average of $773.01 and a 200-day simple moving average of $800.67.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The company reported $3.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.64 by ($1.30). Eli Lilly and Company had a net margin of 22.67% and a return on equity of 85.51%. The business had revenue of $12.73 billion during the quarter, compared to the consensus estimate of $12.77 billion. During the same period in the prior year, the firm earned $2.58 earnings per share. The business's quarterly revenue was up 45.2% compared to the same quarter last year. Equities analysts forecast that Eli Lilly and Company will post 23.48 EPS for the current year.

Eli Lilly and Company Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 10th. Stockholders of record on Friday, August 15th will be paid a $1.50 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $6.00 dividend on an annualized basis and a dividend yield of 0.78%. Eli Lilly and Company's dividend payout ratio (DPR) is presently 48.82%.

Hedge Funds Weigh In On Eli Lilly and Company

Institutional investors and hedge funds have recently modified their holdings of the business. WestEnd Advisors LLC raised its stake in Eli Lilly and Company by 210.0% in the 1st quarter. WestEnd Advisors LLC now owns 31 shares of the company's stock valued at $26,000 after acquiring an additional 21 shares during the period. Wealth Preservation Advisors LLC acquired a new stake in Eli Lilly and Company in the first quarter valued at about $27,000. Citizens National Bank Trust Department boosted its stake in shares of Eli Lilly and Company by 180.0% during the first quarter. Citizens National Bank Trust Department now owns 42 shares of the company's stock valued at $35,000 after purchasing an additional 27 shares in the last quarter. Financial Gravity Asset Management Inc. bought a new position in shares of Eli Lilly and Company during the first quarter worth about $40,000. Finally, TD Capital Management LLC raised its position in shares of Eli Lilly and Company by 129.2% during the first quarter. TD Capital Management LLC now owns 55 shares of the company's stock worth $46,000 after acquiring an additional 31 shares during the last quarter. 82.53% of the stock is currently owned by institutional investors and hedge funds.

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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