Eli Lilly and Company (NYSE:LLY) Stock Price Down 1% - Here's Why

Eli Lilly and Company (NYSE:LLY) experienced a 1% decline in its stock price on Thursday, trading as low as $890.70 before closing at $894.54. During the mid-day trading session, around 504,112 shares were exchanged, marking a significant drop of 83% from the average daily volume of 2,956,188 shares. The previous closing price of the stock was $903.25.

Wall Street Analyst Perspectives

Several research firms have released insights regarding Eli Lilly's stock. Guggenheim has increased their target price from $884.00 to $1,030.00 and has given the stock a "buy" rating as of August 16. BMO Capital Markets has also raised their target, moving from $1,001.00 to $1,101.00 with an "outperform" rating on August 9. Deutsche Bank reaffirmed a "buy" rating with a target price of $1,025.00 on October 3. Other firms like Evercore ISI upgraded to a "hold" rating, and Morgan Stanley set their price objective at $1,106.00. Currently, three analysts have a hold rating on Eli Lilly, while seventeen analysts recommend buying the stock. According to MarketBeat.com, Eli Lilly commands an average rating of "Moderate Buy" with a target price averaging $1,002.24.

Eli Lilly's Recent Performance

The company's market capitalization stands at approximately $848.34 billion, with a PE ratio of 131.74 and a PEG ratio of 2.79. Eli Lilly's current ratio is 1.11, the quick ratio is 0.87, and the debt-to-equity ratio is 1.74. Its 50-day and 200-day moving averages are currently at $921.12 and $860.74, respectively.

Eli Lilly's latest quarterly earnings report was released on August 8, where it reported earnings per share (EPS) of $3.92—significantly beating the expected $2.64 by $1.28. The company achieved a net margin of 18.86% and a return on equity of 67.52%, with revenue reaching $11.30 billion for the quarter, well above analyst expectations of $9.83 billion. Analysts predict that Eli Lilly will report an EPS of 16.49 for the current fiscal year.

Investor Activity

In terms of institutional investment, several firms have recently adjusted their positions in Eli Lilly. Vanguard Group Inc. increased its stake by 1.6% in the first quarter, now owning over 72 million shares valued at approximately $56.59 billion. International Assets Investment Management LLC raised its stake by a staggering 87,091.7%, now holding 12.46 million shares valued at $11.04 billion. Other notable firms, like Capital Research Global Investors and GQG Partners LLC, have also increased their holdings. In total, institutional investors control 82.53% of Eli Lilly's shares.

About Eli Lilly and Company

Eli Lilly and Company is dedicated to discovering, developing, and marketing human pharmaceuticals worldwide. Its product portfolio includes various diabetes therapies such as Basaglar, Humalog, Trulicity, and innovative options for obesity treatment like Zepbound.

Further Insights

For those considering investing in Eli Lilly, it's essential to stay informed about market trends and analyst recommendations. While the stock currently holds a "Moderate Buy" rating, some analysts suggest there are alternative investment opportunities that may provide better returns.

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