Eli Lilly and Company (NYSE:LLY) Reaches New 1-Year High - What's Next?

Key Points

• Eli Lilly hit a new 52-week high, reaching $1,453 during Thursday trading and last trading at $1,438.59.
• The company beat quarterly estimates, reporting EPS of $7.48 versus $5.71 expected and revenue of $24.40 billion, up 38.6% year over year. Most analysts rate the stock Buy, with several raising price targets, though the reported consensus target was $1,404.14.
• Upcoming research on obesity and inflammatory-disease treatments could support broader medicine uses, while GLP-1 price competition may pressure realized prices and margins.

Shares of Eli Lilly and Company (NYSE:LLY - Get Free Report) reached a new 52-week high during trading on Thursday. The company traded as high as $1,453.00 and last traded at $1,438.59, with a volume of 913,698 shares trading hands. The stock had previously closed at $1,417.99.

More Eli Lilly and Company News

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

• Positive Sentiment: Lilly plans to present new research at the American College of Rheumatology meeting. The company says Phase 3 retatrutide trials showed substantial improvements in knee pain and weight for people with knee osteoarthritis and obesity; Phase 3b data also found benefits from combining Taltz and Zepbound for people with psoriatic arthritis and obesity. The findings could support broader uses for its obesity medicines, though the presentations are upcoming. Lilly ACR research announcement
• Positive Sentiment: Lilly secured recommended advertising changes for a seller of compounded tirzepatide products after challenging health-benefit and personalization claims. This may help the company defend its branded franchise, although the decision does not eliminate competition from compounded drugs. National Advertising Division decision
• Neutral Sentiment: Lilly is among the investors in T-Therapeutics’ $133 million financing for early cancer and autoimmune therapies. The investment adds potential pipeline exposure, but the programs are still at an early stage. T-Therapeutics financing announcement
• Negative Sentiment: Recent investor commentary highlights increasing price competition across GLP-1 drugs, including pressure on realized prices. This could temper growth and margins if price reductions offset rising prescription volumes. GLP-1 franchise price competition

Analysts Set New Price Targets

Several equities research analysts have issued reports on LLY shares. Bank of America restated a "buy" rating and set a $1,497.00 price objective on shares of Eli Lilly and Company in a report on Friday, October 30th. Wells Fargo & Company raised their target price on shares of Eli Lilly and Company from $1,330.00 to $1,500.00 and gave the stock an "overweight" rating in a research note on Friday, October 30th. Cantor Fitzgerald increased their price target on Eli Lilly and Company from $1,440.00 to $1,600.00 and gave the company an "overweight" rating in a research report on Monday. BMO Capital Markets reiterated an "outperform" rating and set a $1,650.00 target price on shares of Eli Lilly and Company in a report on Friday, October 30th. Finally, JPMorgan Chase & Co. increased their price target on Eli Lilly and Company from $1,500.00 to $1,650.00 and gave the company an "overweight" rating in a research note on Friday, October 30th. One analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $1,404.14.

Eli Lilly and Company Stock Performance

The company has a quick ratio of 1.00, a current ratio of 1.39 and a debt-to-equity ratio of 1.17. The company has a market cap of $1.30 trillion, a PE ratio of 44.94, a PEG ratio of 1.76 and a beta of 0.40. The company has a 50-day moving average of $1,207.75 and a 200-day moving average of $1,097.85.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The company reported $7.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.71 by $1.77. The business had revenue of $24.40 billion during the quarter, compared to analyst estimates of $22.58 billion. Eli Lilly and Company had a return on equity of 86.76% and a net margin of 31.90%. The company's revenue for the quarter was up 38.6% on a year-over-year basis. During the same period last year, the company earned $7.02 EPS. As a group, analysts anticipate that Eli Lilly and Company will post 35.70 earnings per share for the current year.

Eli Lilly and Company Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Friday, November 13th will be paid a $1.73 dividend. This represents a $6.92 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Friday, November 13th. Eli Lilly and Company's payout ratio is currently 22.46%.

Insider Buying and Selling at Eli Lilly and Company

In other news, EVP Patrik Jonsson sold 6,500 shares of the firm's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $1,175.10, for a total transaction of $7,638,150.00. Following the completion of the transaction, the executive vice president directly owned 54,147 shares in the company, valued at $63,628,139.70. This trade represents a 10.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Anat Hakim sold 5,000 shares of Eli Lilly and Company stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $1,402.52, for a total transaction of $7,012,600.00. Following the sale, the executive vice president owned 4,137 shares of the company's stock, valued at $5,802,225.24. The trade was a 54.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 18,500 shares of company stock valued at $22,970,770. 0.14% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Eli Lilly and Company

Hedge funds have recently added to or reduced their stakes in the business. Silver Grove Financial Group Inc. raised its stake in shares of Eli Lilly and Company by 2.0% in the third quarter. Silver Grove Financial Group Inc. now owns 1,008 shares of the company's stock worth $1,166,000 after buying an additional 20 shares during the period. Davis Investment Partners LLC increased its stake in Eli Lilly and Company by 2.7% in the 3rd quarter. Davis Investment Partners LLC now owns 1,277 shares of the company's stock valued at $1,477,000 after purchasing an additional 34 shares in the last quarter. Illinois Municipal Retirement Fund lifted its position in Eli Lilly and Company by 2.0% during the third quarter. Illinois Municipal Retirement Fund now owns 57,175 shares of the company's stock valued at $66,156,000 after buying an additional 1,130 shares in the last quarter. Northbridge Financial Group LLC raised its stake in Eli Lilly and Company by 2.1% during the third quarter. Northbridge Financial Group LLC now owns 2,711 shares of the company's stock worth $3,138,000 after acquiring an additional 56 shares during the period. Finally, Brooklyn FI LLC bought a new stake in shares of Eli Lilly and Company in the 3rd quarter worth approximately $714,000. Institutional investors and hedge funds own 82.53% of the company's stock.

About Eli Lilly and Company

Eli Lilly and Company NYSE: LLY is a global pharmaceutical company that discovers, develops, manufactures and markets medicines for a range of medical conditions. Its major therapeutic areas include diabetes and obesity, oncology, immunology, neuroscience and cardiovascular health.

The company's portfolio includes Mounjaro and Trulicity for diabetes, Zepbound for chronic weight management, Humalog insulin, Taltz for inflammatory diseases, Verzenio for certain breast cancers and Kisunla for early symptomatic Alzheimer's disease.

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