Eli Lilly and Company (NYSE:LLY) Stock Price Down 1.6% - Here's What Happened

Key Points

• Eli Lilly shares fell 1.6% on Monday, even after strong trading momentum this year, with the stock last seen near $988.76 after briefly dipping to $978.87.
• The biggest negative factor was the U.S. Supreme Court declining to hear Lilly’s whistleblower Medicaid fraud appeal, leaving a roughly $194 million judgment in place and creating a legal overhang for investors.
• Despite the stock pullback, Lilly continues to show fundamental strength in its obesity and diabetes franchise, with upbeat sales trends for Mounjaro, promising retatrutide trial data, and recent quarterly results that beat estimates on both earnings and revenue.

Eli Lilly and Company (NYSE:LLY - Get Free Report)'s stock price was down 1.6% on Monday . The company traded as low as $978.87 and last traded at $988.76. Approximately 2,011,022 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 3,185,821 shares. The stock had previously closed at $1,004.92.

Trending Headlines about Eli Lilly and Company

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: Investor enthusiasm remains supported by strong momentum in Lilly’s obesity portfolio, with recent coverage highlighting surging Mounjaro sales, raised full-year revenue guidance, and the company’s growing position as a key takeover-style growth story.
• Positive Sentiment: Articles on Lilly’s next-generation weight-loss candidate, retatrutide, note promising clinical-trial data that could strengthen the company’s lead in obesity and diabetes if development continues to progress.
• Neutral Sentiment: Lilly also announced it will participate in Bernstein’s 42nd Annual Strategic Decisions Conference on May 28, which could give management another opportunity to reinforce its growth outlook. Article Title
• Negative Sentiment: The biggest drag on the stock is the U.S. Supreme Court’s decision not to hear Lilly’s appeal in a whistleblower Medicaid fraud case, leaving in place a roughly $194 million award and adding a legal overhang for investors. Article Title
• Negative Sentiment: Competitive pressure is also in focus, as reports say Novo Nordisk’s Wegovy pill continues to lead Lilly’s rival obesity offering in prescription tracking, underscoring that Lilly’s growth story still faces meaningful market competition.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Guggenheim reaffirmed a "buy" rating and set a $1,183.00 price target on shares of Eli Lilly and Company in a report on Tuesday, May 5th. Daiwa Securities Group lifted their target price on shares of Eli Lilly and Company from $1,230.00 to $1,250.00 and gave the stock a "buy" rating in a research report on Wednesday, February 18th. Cantor Fitzgerald boosted their target price on shares of Eli Lilly and Company from $1,205.00 to $1,230.00 and gave the company an "overweight" rating in a research note on Friday, May 1st. Wall Street Zen raised Eli Lilly and Company from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 2nd. Finally, Wolfe Research restated an "outperform" rating and issued a $1,325.00 price target on shares of Eli Lilly and Company in a research note on Monday, May 4th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Eli Lilly and Company has a consensus rating of "Moderate Buy" and a consensus target price of $1,218.33.

Eli Lilly and Company Stock Performance

The business's fifty day moving average is $939.88 and its 200-day moving average is $998.21. The company has a quick ratio of 1.10, a current ratio of 1.50 and a debt-to-equity ratio of 1.26. The company has a market cap of $931.15 billion, a PE ratio of 35.12, a P/E/G ratio of 1.09 and a beta of 0.48.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $8.55 earnings per share for the quarter, topping the consensus estimate of $6.97 by $1.58. The business had revenue of $19.80 billion for the quarter, compared to the consensus estimate of $17.82 billion. Eli Lilly and Company had a net margin of 34.98% and a return on equity of 105.77%. The company's quarterly revenue was up 55.5% on a year-over-year basis. During the same period last year, the firm earned $3.34 earnings per share. Eli Lilly and Company has set its FY 2026 guidance at 35.500-37.000 EPS. As a group, research analysts predict that Eli Lilly and Company will post 35.82 EPS for the current fiscal year.

Eli Lilly and Company Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 15th will be given a dividend of $1.73 per share. The ex-dividend date is Friday, May 15th. This represents a $6.92 annualized dividend and a yield of 0.7%. Eli Lilly and Company's payout ratio is 24.58%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in LLY. Brighton Jones LLC boosted its holdings in Eli Lilly and Company by 22.0% in the 4th quarter. Brighton Jones LLC now owns 9,597 shares of the company's stock worth $7,409,000 after buying an additional 1,730 shares during the period. Revolve Wealth Partners LLC raised its holdings in Eli Lilly and Company by 2.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,471 shares of the company's stock valued at $1,136,000 after acquiring an additional 40 shares during the period. Schnieders Capital Management LLC. raised its holdings in Eli Lilly and Company by 16.7% during the second quarter. Schnieders Capital Management LLC. now owns 7,993 shares of the company's stock valued at $6,231,000 after acquiring an additional 1,141 shares during the period. Flow Traders U.S. LLC purchased a new position in shares of Eli Lilly and Company in the second quarter valued at about $356,000. Finally, Nebula Research & Development LLC bought a new position in shares of Eli Lilly and Company in the second quarter worth about $749,000. Institutional investors own 82.53% of the company's stock.

Eli Lilly and Company Company Profile

Eli Lilly and Company NYSE: LLY is a global pharmaceutical company founded in 1876 and headquartered in Indianapolis, Indiana. The company researches, develops, manufactures and commercializes a broad range of medicines and therapies for patients worldwide. Eli Lilly maintains operations and commercial presence across North America, Europe, Asia and other regions, serving both developed and emerging markets. The company has been led in recent years by President and Chief Executive Officer David A.

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