Eli Lilly and Company (NYSE:LLY) Hits New 52-Week High – Time to Buy?

Eli Lilly and Company (NYSE:LLY) shares hit a new 52-week high on Thursday. The stock traded as high as $1,455.02 and last traded at $1,448.1290, with a volume of 61,831 shares trading hands. The stock had previously closed at $1,437.29.

Key Eli Lilly and Company News

These are some of the LLY news items that stood out recently:

• Positive Sentiment: Phase 3b results showed that combining Zepbound with Taltz produced greater and durable improvement in psoriatic arthritis disease activity than Taltz alone, broadening the potential use of Lilly’s medicines. Phase 3b Taltz and Zepbound results
• Neutral Sentiment: Investors are also weighing whether Lilly’s strong growth outlook and cash-flow potential justify its elevated valuation. Yahoo Finance: Is Eli Lilly priced below its cash-flow potential?
• Negative Sentiment: Potential U.S. Medicare drug-price negotiations pose a risk to Lilly’s revenue, with reports identifying the company as facing near-term exposure. Benzinga: Drug-pricing risks for Lilly

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. TD Cowen reaffirmed a “buy” rating and set a $1,250.00 price target on shares of Eli Lilly and Company in a research report on Tuesday, September 22nd. Scotiabank raised their price objective on Eli Lilly and Company from $1,300.00 to $1,605.00 and gave the stock a “sector outperform” rating in a research report on Friday, October 30th. HSBC boosted their target price on Eli Lilly and Company from $850.00 to $940.00 and gave the stock a “reduce” rating in a research note on Thursday, September 10th. Wells Fargo & Company boosted their target price on 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. Finally, Morgan Stanley upped their target price on Eli Lilly and Company from $1,430.00 to $1,596.00 and gave the company an “overweight” rating in a research report on Friday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Eli Lilly and Company currently has an average rating of “Moderate Buy” and an average target price of $1,416.64.

Eli Lilly and Company Price Performance

The stock has a market cap of $1.36 trillion, a price-to-earnings ratio of 46.86, a price-to-earnings-growth ratio of 1.72 and a beta of 0.40. The stock’s 50 day moving average price is $1,231.13 and its two-hundred day moving average price is $1,106.42. The company has a quick ratio of 1.00, a current ratio of 1.39 and a debt-to-equity ratio of 1.17.

Eli Lilly and Company (NYSE:LLY) last issued its earnings results on Thursday, October 29th. The company reported $7.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.71 by $1.77. Eli Lilly and Company had a net margin of 31.90% and a return on equity of 86.76%. The firm had revenue of $24.40 billion during the quarter, compared to analysts’ expectations of $22.58 billion. During the same quarter last year, the company posted $7.02 earnings per share. The firm’s revenue was up 38.6% compared to the same quarter last year. Equities research analysts forecast that Eli Lilly and Company will post 35.67 EPS for the current fiscal year.

Eli Lilly and Company Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 13th will be paid a dividend of $1.73 per share. The ex-dividend date is Friday, November 13th. This represents a $6.92 dividend on an annualized basis and a dividend yield of 0.5%. Eli Lilly and Company’s dividend payout ratio (DPR) is presently 22.46%.

Insider Activity

In related news, EVP Patrik Jonsson sold 6,500 shares of the firm’s stock in a transaction dated 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 sale, the executive vice president directly owned 54,147 shares of the company’s stock, valued at $63,628,139.70. This trade represents a 10.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 that occurred on Monday, November 2nd. The shares were sold at an average price of $1,402.52, for a total value of $7,012,600.00. Following the transaction, the executive vice president owned 4,137 shares of the company’s stock, valued at approximately $5,802,225.24. This represents a 54.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.14% of the company’s stock.

Institutional Investors Weigh In On Eli Lilly and Company

Hedge funds have recently bought and sold shares of the stock. Sumitomo Mitsui Financial Group Inc. grew its position in Eli Lilly and Company by 5,100.0% during the third quarter. Sumitomo Mitsui Financial Group Inc. now owns 52 shares of the company’s stock valued at $60,000 after buying an additional 51 shares during the period. State Street Corp increased its holdings in Eli Lilly and Company by 1.7% in the third quarter. State Street Corp now owns 36,848,565 shares of the company’s stock valued at $42,636,738,000 after buying an additional 632,811 shares in the last quarter. Intesa Sanpaolo Wealth Management increased its holdings in Eli Lilly and Company by 38.1% in the third quarter. Intesa Sanpaolo Wealth Management now owns 7,968 shares of the company’s stock valued at $9,220,000 after buying an additional 2,198 shares in the last quarter. All Terrain Financial Advisors LLC raised its position in shares of Eli Lilly and Company by 12.2% in the third quarter. All Terrain Financial Advisors LLC now owns 443 shares of the company’s stock worth $513,000 after acquiring an additional 48 shares during the period. Finally, Cornerstone Select Advisors LLC raised its position in shares of Eli Lilly and Company by 4.3% in the third quarter. Cornerstone Select Advisors LLC now owns 341 shares of the company’s stock worth $395,000 after acquiring an additional 14 shares during the period. Hedge funds and other institutional investors own 82.53% of the company’s stock.

About Eli Lilly and Company

Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures and markets medicines for people and animals. Its work spans areas including diabetes and obesity, cancer, immunology, neuroscience and pain management. The company’s medicines include treatments for diabetes and obesity, such as Mounjaro and Zepbound, as well as products for cancer and other conditions. Lilly also conducts research into new medicines and invests in the development of treatments across its therapeutic areas.