Eli Lilly and Company (NYSE:LLY) Stock Price Down 1.2% – What’s Next?

Eli Lilly and Company (NYSE:LLY)’s stock price fell 1.2% during mid-day trading on Monday . The stock traded as low as $1,147.00 and last traded at $1,160.57. 2,818,274 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 3,082,697 shares. The stock had previously closed at $1,174.61.

Eli Lilly and Company News Summary

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

• Positive Sentiment: Lilly agreed to acquire privately held Merida Biosciences for up to $2.875 billion in cash, including milestone payments. The deal adds MER511, a Phase 1 antibody candidate targeting Graves’ disease and thyroid eye disease, as well as Merida’s antibody-engineering platform. The acquisition broadens Lilly’s growth prospects beyond its obesity and diabetes franchises into autoimmune and allergy treatments. Lilly To Acquire Merida Biosciences
• Positive Sentiment: New Phase 3b data showed that combining obesity drug Zepbound with Taltz produced lasting improvements in adults with obesity and psoriasis or psoriatic arthritis, while maintaining or improving weight and metabolic outcomes. The results could support broader use of Lilly’s medicines and reinforce Zepbound’s commercial momentum. New Zepbound Study
• Positive Sentiment: The FDA expanded Mounjaro’s approval to reduce cardiovascular risk in high-risk patients with Type 2 diabetes. The new indication increases the drug’s addressable market and gives Lilly an additional argument in negotiations with insurers concerned about GLP-1 costs. Mounjaro FDA Approval
• Neutral Sentiment: Lilly will participate in the Morgan Stanley Global Healthcare Conference on September 14. Investors may look for updates on demand, manufacturing, pricing, the Merida transaction and the broader pipeline. Morgan Stanley Healthcare Conference
• Negative Sentiment: The Merida purchase carries clinical risk because its lead program is only in Phase 1, while Lilly continues to make sizable acquisitions. The company also faces potential employer and insurer pullbacks from GLP-1 coverage in 2027. A study found low starter doses can produce weight loss with less nausea, but potentially lower efficacy, which could complicate pricing and coverage discussions. Lilly Immunology Deal Starts in Phase 1

Analyst Upgrades and Downgrades

LLY has been the subject of a number of recent analyst reports. Morgan Stanley reaffirmed an “overweight” rating and issued a $1,419.00 price objective on shares of Eli Lilly and Company in a research report on Thursday, August 6th. The Goldman Sachs Group reissued a “buy” rating and set a $1,283.00 target price on shares of Eli Lilly and Company in a report on Friday, May 22nd. Cantor Fitzgerald increased their price target on Eli Lilly and Company from $1,350.00 to $1,410.00 and gave the company an “overweight” rating in a research note on Thursday, August 6th. Bank of America raised their price target on Eli Lilly and Company from $1,251.00 to $1,334.00 and gave the company a “buy” rating in a report on Friday, July 10th. Finally, Citigroup lifted their price objective on shares of Eli Lilly and Company from $1,500.00 to $1,600.00 and gave the stock a “buy” rating in a research report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $1,292.18.

Eli Lilly and Company Stock Performance

The firm has a market capitalization of $1.09 trillion, a price-to-earnings ratio of 38.91, a PEG ratio of 1.36 and a beta of 0.50. The company has a fifty day moving average of $1,191.34 and a two-hundred day moving average of $1,067.41. 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 (NYSE:LLY) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $8.38 EPS for the quarter, beating 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 firm had revenue of $22.97 billion for the quarter, compared to analyst estimates of $20.82 billion. During the same period in the prior year, the firm posted $6.31 EPS. The company’s revenue for the quarter was up 47.7% on a year-over-year basis. Eli Lilly and Company has set its FY 2026 guidance at 35.500-36.500 EPS. As a group, equities research analysts predict that Eli Lilly and Company will post 36.35 earnings per share for the current fiscal year.

Eli Lilly and Company Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 14th will be given a dividend of $1.73 per share. This represents a $6.92 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Friday, August 14th. Eli Lilly and Company’s dividend payout ratio (DPR) is currently 23.22%.

Insiders Place Their Bets

In other news, CAO Donald A. Zakrowski sold 2,000 shares of Eli Lilly and Company stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $1,185.01, for a total value of $2,370,020.00. Following the completion of the sale, the chief accounting officer directly owned 1,526 shares in the company, valued at approximately $1,808,325.26. The trade was a 56.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Patrik Jonsson sold 6,500 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $1,175.10, for a total value of $7,638,150.00. Following the sale, the executive vice president directly owned 54,147 shares in the company, valued at $63,628,139.70. This represents a 10.72% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 13,500 shares of company stock worth $15,958,170 in the last quarter. 0.14% of the stock is currently owned by corporate insiders.

Institutional Trading of Eli Lilly and Company

A number of institutional investors have recently modified their holdings of the stock. California State Teachers Retirement System increased its holdings in Eli Lilly and Company by 120,133.2% in the 2nd quarter. California State Teachers Retirement System now owns 1,460,379,190 shares of the company’s stock valued at $1,751,622,612,000 after buying an additional 1,459,164,568 shares during the period. BlackRock Inc. lifted its holdings in shares of Eli Lilly and Company by 1.6% during the 2nd quarter. BlackRock Inc. now owns 67,540,400 shares of the company’s stock worth $81,009,981,000 after acquiring an additional 1,046,558 shares during the period. State Street Corp lifted its holdings in shares of 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 worth $38,002,744,000 after acquiring an additional 635,358 shares during the period. Morgan Stanley boosted its position in shares of Eli Lilly and Company by 2.7% during the 4th quarter. Morgan Stanley now owns 15,593,019 shares of the company’s stock worth $16,757,510,000 after acquiring an additional 407,166 shares in the last quarter. Finally, Capital World Investors boosted its position in shares of Eli Lilly and Company by 0.4% during the 4th 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 in the last quarter. 82.53% of the stock is currently 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.