Eli Lilly and Company (NYSE:LLY) Stock Price Up 1.9% - Here's What Happened

Eli Lilly and Company (NYSE:LLY) saw its share price increase by 1.9% on a recent Monday, trading at a high of $801.97 before settling at $800.72. During mid-day trading, 1,067,866 shares exchanged hands, marking a significant decline of 73% from the average daily volume of 4,014,303 shares. The stock had closed at $785.41 on the previous trading day.

Analyst Ratings Changes

Recently, several research analysts have weighed in on Eli Lilly. StockNews.com upgraded the company's rating from "hold" to "buy" on January 22nd. Additionally, Redburn Atlantic classified the stock as a "hold" in their report published on November 4th. Bank of America reiterated a "buy" rating, setting a price target of $997.00 on December 10th. Moreover, Sanford C. Bernstein initiated coverage with an "outperform" rating and a price objective of $1,100.00 on October 17th. Wolfe Research also started coverage with an "outperform" rating and a target price of $1,000.00 on November 15th. Out of 22 analysts, four rated the stock as a hold while the majority, 18, rated it as a buy. According to MarketBeat.com data, the average rating for Eli Lilly is a "Moderate Buy" with an average price target of $1,002.22.

Eli Lilly and Company Trading Up 1.9%

The current market capitalization of Eli Lilly stands at $761.67 billion, and it has a price-to-earnings ratio of 86.75. The price-to-earnings-growth ratio is 1.59, and the stock has a beta of 0.41. The 50-day moving average price for the company is $776.69, while the 200-day moving average stands at $848.19. Other notable financial ratios include a debt-to-equity ratio of 2.03, a quick ratio of 0.97, and a current ratio of 1.27.

Eli Lilly and Company Reports Earnings

The company released its earnings results on October 30th, reporting $1.18 earnings per share for the quarter. This figure was lower than the consensus estimate of $1.52, missing by $0.34. The total revenue for the quarter was $11.44 billion, which also fell short of the expected $12.09 billion. However, Eli Lilly did achieve a year-over-year revenue increase of 20.4%. The company recorded a net margin of 20.48% and a return on equity of 71.08%. Analysts predict that Eli Lilly will post an EPS of 12.98 for the current year.

Eli Lilly and Company Increases Dividend

The company also declared an increase in its quarterly dividend. Shareholders on record as of February 14th will receive a dividend of $1.50 per share, to be paid on March 10th. This new dividend represents an annualized amount of $6.00, yielding 0.75%, up from a previous quarterly dividend of $1.30. Currently, the company's dividend payout ratio is 56.22%.

Share Buyback Program

On December 9th, Eli Lilly's Board of Directors authorized a share buyback program, allowing the company to repurchase up to $15.00 billion worth of shares. This authorization permits the buyback of up to 2% of its outstanding stock, indicating that the management believes the shares may be undervalued.

Insider Activity

In insider news, CAO Donald A. Zakrowski sold 900 shares of the company's stock on November 8th for an average price of $803.38, totaling $723,042. Following this transaction, he now owns 5,480 shares, valued at approximately $4,402,522.40. This sale decreased his position by 14.11%. Currently, company insiders own 0.13% of the stock.

Hedge Fund Activity

Institutional investors have recently been active regarding Eli Lilly stock. Peterson Financial Group Inc. acquired a new position valued at $27,000, and MidAtlantic Capital Management Inc. did the same at $30,000. Highline Wealth Partners LLC increased its holdings by 80% in the fourth quarter, now owning 45 shares worth $35,000. Cedar Mountain Advisors LLC also lifted its position by 53.3%, now holding 46 shares valued at $41,000. Overall, institutional investors hold 82.53% of Eli Lilly's stock.

About Eli Lilly and Company

Eli Lilly and Company is a global leader in developing and marketing human pharmaceuticals. The company specializes in products for diabetes management, including Basaglar, Humalog, and Trulicity, among others, as well as medications for obesity.

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