Eli Lilly and Company (NYSE:LLY) Stock Price Up 2.5% - Should You Buy?

Key Points

• Eli Lilly shares rose 2.5% on Wednesday, trading as high as $1,022.82 as volume came in above average. The stock closed at $989.87 the prior day.
• Recent positive obesity-drug updates helped sentiment, including late-stage data showing weight loss was largely maintained after switching to Foundayo or lower-dose Zepbound. Lilly is also pushing next-generation obesity candidates such as oral pills and retatrutide.
• Wall Street remains broadly bullish on Lilly, with multiple firms raising price targets and the consensus rating sitting at Moderate Buy. Analysts cite Lilly’s leadership in the GLP-1 and obesity markets, though competition remains a risk.

Eli Lilly and Company (NYSE:LLY - Get Free Report) shot up 2.5% during trading on Wednesday . The stock traded as high as $1,022.82 and last traded at $1,014.9290. 3,466,683 shares changed hands during mid-day trading, an increase of 8% from the average session volume of 3,210,025 shares. The stock had previously closed at $989.87.

Key Stories Impacting Eli Lilly and Company

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

• Positive Sentiment: New late-stage trial results showed patients largely maintained weight loss after switching to Foundayo or lower-dose Zepbound, strengthening confidence in Lilly’s obesity franchise and its ability to extend the life of its GLP-1 portfolio. Eli Lilly Says Newly Approved Foundayo, Lower-Dose Zepbound Help Sustain Weight Loss
• Positive Sentiment: Lilly is also highlighting next-generation obesity candidates, including oral pills and retatrutide, which signals a broader pipeline strategy to stay ahead of rivals in the rapidly growing weight-loss market. Lilly Bets on Next-Generation Obesity Drugs to Stay Ahead
• Positive Sentiment: Analysts continue to frame Lilly as a dominant GLP-1 winner, with coverage noting the company is cementing its lead in the massive obesity drug market. GLP-1 Wars: Winners & Losers
• Neutral Sentiment: The company launched its Alzheimer’s drug in India and marked its 150th anniversary with community and manufacturing announcements, which are positive for long-term strategy but likely less important for near-term trading. Eli Lilly launches Alzheimer's drug Donanemab in India
• Negative Sentiment: Rising competition remains a watch item, as a new obesity-focused challenger, Kailera Therapeutics, is drawing analyst attention and could eventually pressure Lilly’s market dominance if its pipeline develops successfully. This Weight-Loss Drug Challenger Could Follow Eli Lilly's Playbook: Analyst

Wall Street Analyst Weigh In

Several brokerages recently weighed in on LLY. Argus upped their target price on shares of Eli Lilly and Company from $930.00 to $1,200.00 and gave the stock a "buy" rating in a research note on Monday, February 9th. Jefferies Financial Group set a $1,300.00 price target on shares of Eli Lilly and Company and gave the company a "buy" rating in a research report on Friday, March 13th. Scotiabank reaffirmed an "outperform" rating and set a $1,300.00 price objective on shares of Eli Lilly and Company in a research report on Thursday, February 5th. HSBC cut Eli Lilly and Company from a "hold" rating to a "reduce" rating and reduced their price objective for the company from $1,070.00 to $850.00 in a research note on Tuesday, March 17th. Finally, Zacks Research downgraded Eli Lilly and Company from a "strong-buy" rating to a "hold" rating in a report on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,218.33.

Eli Lilly and Company Trading Up 2.5%

The company has a debt-to-equity ratio of 1.26, a current ratio of 1.50 and a quick ratio of 1.10. The firm has a market capitalization of $955.80 billion, a PE ratio of 36.05, a price-to-earnings-growth ratio of 1.05 and a beta of 0.48. The business's 50-day moving average price is $939.93 and its 200-day moving average price is $994.31.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $8.55 EPS for the quarter, beating the consensus estimate of $6.97 by $1.58. Eli Lilly and Company had a net margin of 34.98% and a return on equity of 105.77%. The firm had revenue of $19.80 billion during the quarter, compared to the consensus estimate of $17.82 billion. During the same quarter in the prior year, the firm earned $3.34 EPS. Eli Lilly and Company's revenue for the quarter was up 55.5% on a year-over-year basis. Eli Lilly and Company has set its FY 2026 guidance at 35.500-37.000 EPS. As a group, analysts expect that Eli Lilly and Company will post 35.8 earnings per share for the current fiscal year.

Eli Lilly and Company Announces Dividend

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

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in LLY. Maryland Capital Advisors Inc. purchased a new stake in shares of Eli Lilly and Company during the 4th quarter valued at about $25,000. Osbon Capital Management LLC acquired a new stake in Eli Lilly and Company in the fourth quarter valued at approximately $25,000. Vermillion & White Wealth Management Group LLC raised its stake in shares of Eli Lilly and Company by 84.2% during the third quarter. Vermillion & White Wealth Management Group LLC now owns 35 shares of the company's stock valued at $27,000 after purchasing an additional 16 shares during the period. Basso Capital Management L.P. acquired a new position in shares of Eli Lilly and Company during the fourth quarter worth $30,000. Finally, 10Elms LLP lifted its position in shares of Eli Lilly and Company by 33.3% during the third quarter. 10Elms LLP now owns 40 shares of the company's stock worth $31,000 after purchasing an additional 10 shares in the last quarter. 82.53% of the stock is owned by hedge funds and other institutional investors.

About Eli Lilly and Company

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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