Eli Lilly and Company (NYSE:LLY) Shares Down 4.5% – Should You Sell?

Eli Lilly and Company (NYSE:LLY)’s stock price dropped 4.5% during mid-day trading on Thursday . The stock traded as low as $1,153.14 and last traded at $1,155.97. Approximately 3,014,422 shares were traded during trading, a decline of 3% from the average daily volume of 3,117,803 shares. The stock had previously closed at $1,210.02.

Key Eli Lilly and Company News

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

• Positive Sentiment: Lilly continues to pull ahead of Novo Nordisk in the rapidly expanding obesity-treatment market, with significantly stronger recent revenue growth and a more favorable outlook. Lilly’s latest reported quarter included 55.5% year-over-year revenue growth, while Novo Nordisk expects an adjusted sales decline. Eli Lilly Stock Has Skyrocketed. Novo Nordisk Has Crashed.
• Positive Sentiment: The company is investing another $750 million with Resilience to expand U.S. manufacturing capacity for diabetes and obesity medicines. The project is expected to add at least 400 jobs and supports Lilly’s ability to meet continued demand. Lilly Boosts Diabetes and Obesity Capacity With $750 Million Deal
• Positive Sentiment: Completion of a late-stage retatrutide trial provides a potential future catalyst in diabetes, obesity and related cardiovascular indications. Lilly has also begun an early-stage study of eloralintide, adding another candidate to its weight-loss pipeline. Lilly’s Retatrutide Trial Completion Signals Next Wave in Diabetes and Obesity Drugs
• Neutral Sentiment: Analysts are focused on key operating metrics for Lilly’s second-quarter results, including demand, prescription trends and guidance. The company’s prior earnings report substantially exceeded estimates, raising expectations for the upcoming release. Lilly Q2 Earnings on the Horizon
• Negative Sentiment: Weight-loss drug stocks came under pressure as investors digested clinical-trial news and positioned ahead of earnings. Technical selling intensified after Lilly fell below a closely watched support level, despite its stronger long-term fundamentals. Weight Loss Drug Stocks Slump

Wall Street Analyst Weigh In

LLY has been the subject of a number of analyst reports. Weiss Ratings raised Eli Lilly and Company from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 1st. Berenberg Bank lifted their price objective on shares of Eli Lilly and Company from $1,050.00 to $1,135.00 and gave the stock a “hold” rating in a report on Monday, June 22nd. 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. JPMorgan Chase & Co. raised their price target 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 report on Tuesday, July 7th. Finally, The Goldman Sachs Group restated a “buy” rating and set a $1,283.00 price target on shares of Eli Lilly and Company in a report on Friday, May 22nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $1,283.64.

Eli Lilly and Company Stock Down 0.5%

The company has a market capitalization of $1.08 trillion, a PE ratio of 40.83, a P/E/G ratio of 1.43 and a beta of 0.51. The stock’s fifty day moving average is $1,152.66 and its two-hundred day moving average is $1,044.16. The company has a current ratio of 1.50, a quick ratio of 1.10 and a debt-to-equity ratio of 1.26.

Eli Lilly and Company (NYSE:LLY) last released its earnings results on Thursday, April 30th. The company reported $8.55 earnings per share for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $17.82 billion. During the same period in the previous year, the company earned $3.34 earnings per share. The company’s quarterly revenue was up 55.5% on a year-over-year basis. As a group, analysts predict that Eli Lilly and Company will post 34.91 EPS for the current year.

Eli Lilly and Company Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be paid a dividend of $1.73 per share. The ex-dividend date is Friday, August 14th. This represents a $6.92 annualized dividend and a dividend yield of 0.6%. Eli Lilly and Company’s dividend payout ratio is presently 24.58%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of LLY. Brighton Jones LLC lifted its holdings in shares of Eli Lilly and Company by 22.0% in the fourth 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 in the last quarter. Revolve Wealth Partners LLC raised its holdings in shares of Eli Lilly and Company by 2.8% in the 4th 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 in the last quarter. Schnieders Capital Management LLC. grew its holdings in shares of 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 worth $6,231,000 after purchasing an additional 1,141 shares in the last quarter. Flow Traders U.S. LLC bought a new position in shares of Eli Lilly and Company in the 2nd quarter worth $356,000. Finally, Nebula Research & Development LLC bought a new position in Eli Lilly and Company in the second quarter valued at $749,000. 82.53% of the stock is owned by institutional investors.

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.