Eli Lilly and Company (NYSE:LLY) Shares Down 3.5% – Should You Sell?

Eli Lilly and Company (NYSE:LLY) dropped 3.5% during mid-day trading on Friday . The company traded as low as $878.01 and last traded at $881.23. Approximately 962,952 shares were traded during trading, a decline of 69% from the average daily volume of 3,108,924 shares. The stock had previously closed at $912.76.

Analysts Set New Price Targets

LLY has been the topic of several research analyst reports. Berenberg Bank set a $970.00 target price on shares of Eli Lilly and Company in a report on Thursday, January 16th. Truist Financial raised their price objective on shares of Eli Lilly and Company from $1,029.00 to $1,038.00 and gave the stock a “buy” rating in a report on Monday, February 3rd. Bank of America reaffirmed a “buy” rating and issued a $997.00 target price on shares of Eli Lilly and Company in a research note on Tuesday, December 10th. Leerink Partners set a $950.00 price target on Eli Lilly and Company in a research report on Friday, January 17th. Finally, Wolfe Research initiated coverage on shares of Eli Lilly and Company in a research report on Friday, November 15th. They issued an “outperform” rating and a $1,000.00 price objective on the stock. Three equities research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $1,007.50.

Eli Lilly and Company Stock Performance

The stock has a 50 day moving average of $824.92 and a 200 day moving average of $849.05. The company has a market capitalization of $827.73 billion, a price-to-earnings ratio of 74.33, a price-to-earnings-growth ratio of 1.40 and a beta of 0.42. The company has a quick ratio of 0.97, a current ratio of 1.15 and a debt-to-equity ratio of 2.00.

Eli Lilly and Company (NYSE:LLY) last issued its quarterly earnings results on Thursday, February 6th. The company reported $5.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.45 by ($0.13). Eli Lilly and Company had a return on equity of 85.24% and a net margin of 23.51%. As a group, analysts predict that Eli Lilly and Company will post 23.48 EPS for the current year.

Eli Lilly and Company Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 10th. Shareholders of record on Friday, February 14th will be issued a dividend of $1.50 per share. This is an increase from Eli Lilly and Company’s previous quarterly dividend of $1.30. This represents a $6.00 dividend on an annualized basis and a yield of 0.69%. The ex-dividend date of this dividend is Friday, February 14th. Eli Lilly and Company’s dividend payout ratio (DPR) is presently 51.24%.

Eli Lilly and Company declared that its Board of Directors has initiated a share repurchase plan on Monday, December 9th that allows the company to repurchase $15.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Eli Lilly and Company

Several large investors have recently added to or reduced their stakes in LLY. Beacon Financial Advisory LLC grew its position in shares of Eli Lilly and Company by 15.7% during the 3rd quarter. Beacon Financial Advisory LLC now owns 272 shares of the company’s stock worth $241,000 after buying an additional 37 shares during the period. D.B. Root & Company LLC grew its holdings in Eli Lilly and Company by 9.5% in the third quarter. D.B. Root & Company LLC now owns 402 shares of the company’s stock worth $356,000 after purchasing an additional 35 shares during the period. Blake Schutter Theil Wealth Advisors LLC bought a new stake in Eli Lilly and Company in the third quarter valued at $456,000. Graypoint LLC raised its holdings in shares of Eli Lilly and Company by 4.9% during the third quarter. Graypoint LLC now owns 8,319 shares of the company’s stock valued at $7,370,000 after purchasing an additional 386 shares during the period. Finally, Advisor Resource Council acquired a new position in shares of Eli Lilly and Company during the third quarter valued at about $884,000. Institutional investors and hedge funds own 82.53% of the company’s stock.

Eli Lilly and Company Company Profile

Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity.