Bank of America Corp DE Takes $13.52 Billion Position in Eli Lilly and Company $LLY

Key Points

• Bank of America acquired a major Eli Lilly stake: The firm bought 11.27 million shares worth approximately $13.52 billion, representing about 1.2% of Lilly and 0.9% of Bank of America’s portfolio.
• Institutional confidence remains high: Several major investors increased their holdings, with hedge funds and other institutions collectively owning 82.53% of Lilly’s shares.
• Lilly reported strong growth but faces valuation and execution risks: Quarterly EPS and revenue exceeded expectations, with revenue up 47.7% year over year, while analysts maintain a “Moderate Buy” consensus and a $1,295.39 price target. Recent insider sales and the stock’s premium valuation remain potential concerns.

Bank of America Corp DE acquired a new stake in shares of Eli Lilly and Company (NYSE:LLY - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 11,274,243 shares of the company's stock, valued at approximately $13,522,666,000. Eli Lilly and Company makes up about 0.9% of Bank of America Corp DE's portfolio, making the stock its 17th biggest position. Bank of America Corp DE owned approximately 1.20% of Eli Lilly and Company at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. lifted its holdings in shares of Eli Lilly and Company by 1.6% during the second quarter. BlackRock Inc. now owns 67,540,400 shares of the company's stock valued at $81,009,981,000 after purchasing an additional 1,046,558 shares during the last quarter. State Street Corp increased its position in Eli Lilly and Company by 1.8% during the 4th quarter. State Street Corp now owns 35,361,916 shares of the company's stock valued at $38,002,744,000 after buying an additional 635,358 shares in the last quarter. Morgan Stanley raised its stake in Eli Lilly and Company by 2.7% during the fourth quarter. Morgan Stanley now owns 15,593,019 shares of the company's stock valued at $16,757,510,000 after buying an additional 407,166 shares during the last quarter. Capital World Investors grew its stake in shares of Eli Lilly and Company by 0.4% in the fourth quarter. Capital World Investors now owns 15,031,750 shares of the company's stock worth $16,154,619,000 after acquiring an additional 61,851 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its stake in shares of Eli Lilly and Company by 10.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 14,910,505 shares of the company's stock worth $16,024,022,000 after acquiring an additional 1,432,069 shares during the last quarter. Hedge funds and other institutional investors own 82.53% of the company's stock.

Trending Headlines about Eli Lilly and Company

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

• Positive Sentiment: Competitive position in obesity drugs: Morgan Stanley downgraded Novo Nordisk to Sell, citing expectations that Lilly will continue taking market share before semaglutide patent expiration becomes the primary issue. This reinforces the outlook for Lilly’s obesity and diabetes portfolio. Morgan Stanley Downgrades Novo Nordisk to Sell on Lilly Competition
• Positive Sentiment: Higher earnings expectations: Erste Group raised its fiscal 2027 EPS forecast for LLY to $47.18 from $45.14, signaling confidence in continued earnings growth. Eli Lilly analyst earnings estimate update
• Positive Sentiment: Pipeline diversification: Lilly completed its acquisition of AtaiBeckley, adding BPL-003, an investigational rapid-acting therapy for treatment-resistant depression and other mental-health conditions. The deal broadens Lilly’s pipeline beyond metabolic medicines. Lilly completes acquisition of AtaiBeckley
• Positive Sentiment: New growth opportunities: Lilly is using GLP-1-generated cash flow to expand into women’s health, including treatments for endometriosis and pregnancy-related disorders, while its immunology business and acquisitions create additional potential growth engines. Lilly expands women’s health initiatives
• Neutral Sentiment: Valuation and momentum are in focus: Recent coverage highlights Lilly’s trillion-dollar market capitalization, roughly 50% GLP-1 revenue growth and a recent pullback. These support the long-term story but leave investors questioning how much future growth is already reflected in the stock price. Eli Lilly valuation and growth outlook
• Negative Sentiment: Execution and spending risks: The AtaiBeckley purchase requires Lilly to fund a clinical-stage program with uncertain outcomes, while investors remain sensitive to the company’s premium valuation and its ability to sustain rapid growth as competition increases.

Insider Buying and Selling

In related news, EVP Anat Hakim sold 5,000 shares of Eli Lilly and Company stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $1,190.00, for a total transaction of $5,950,000.00. Following the sale, the executive vice president owned 11,875 shares of the company's stock, valued at approximately $14,131,250. This trade represents a 29.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Donald Zakrowski sold 2,000 shares of the business's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $1,185.01, for a total value of $2,370,020.00. Following the completion of the transaction, the chief accounting officer directly owned 1,526 shares in the company, valued at approximately $1,808,325.26. This represents a 56.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 13,500 shares of company stock valued at $15,958,170. Company insiders own 0.14% of the company's stock.

Eli Lilly and Company Stock Down 0.0%

Eli Lilly and Company stock opened at $1,115.53 on Monday. The stock has a market cap of $1.05 trillion, a PE ratio of 37.43, a price-to-earnings-growth ratio of 1.38 and a beta of 0.50. The company has a debt-to-equity ratio of 1.41, a quick ratio of 1.00 and a current ratio of 1.35. Eli Lilly and Company has a one year low of $712.05 and a one year high of $1,292.65. The stock has a fifty day moving average of $1,183.67 and a 200 day moving average of $1,073.30.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $8.38 EPS for the quarter, topping analysts' consensus estimates of $6.40 by $1.98. Eli Lilly and Company had a return on equity of 97.83% and a net margin of 33.53%.The company had revenue of $22.97 billion for the quarter, compared to analysts' expectations of $20.82 billion. During the same period last year, the firm earned $6.31 EPS. Eli Lilly and Company's revenue for the quarter was up 47.7% compared to the same quarter last year. Eli Lilly and Company has set its FY 2026 guidance at 35.500-36.500 EPS. As a group, sell-side analysts predict that Eli Lilly and Company will post 36.53 EPS for the current year.

Eli Lilly and Company Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Friday, August 14th were paid a dividend of $1.73 per share. The ex-dividend date was Friday, August 14th. This represents a $6.92 dividend on an annualized basis and a dividend yield of 0.6%. Eli Lilly and Company's payout ratio is 23.22%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on LLY. JPMorgan Chase & Co. raised their price objective on shares of Eli Lilly and Company from $1,300.00 to $1,400.00 and gave the company an "overweight" rating in a research note on Tuesday, July 7th. Sanford C. Bernstein upped their target price on shares of Eli Lilly and Company from $1,300.00 to $1,385.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 14th. Berenberg Bank raised their price target on shares of Eli Lilly and Company from $1,050.00 to $1,135.00 and gave the company a "hold" rating in a research report on Monday, June 22nd. Bank of America raised their price target on shares of Eli Lilly and Company from $1,251.00 to $1,334.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Finally, Truist Financial boosted their price objective on shares of Eli Lilly and Company from $1,370.00 to $1,376.00 and gave the stock a "buy" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, twenty-four have assigned 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, Eli Lilly and Company currently has an average rating of "Moderate Buy" and a consensus price target of $1,295.39.

About Eli Lilly and Company

Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures and markets medicines for a range of medical conditions. Its portfolio includes treatments for diabetes and obesity, oncology, immunology, neuroscience, cardiovascular disease and other areas of significant unmet medical need.

The company's products include Mounjaro and Trulicity for diabetes, Zepbound for chronic weight management, and insulin products such as Humalog. Lilly also markets Verzenio for certain breast cancers and Kisunla for the treatment of early symptomatic Alzheimer's disease.

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.