Zacks Investment Research Lowers Eli Lilly And Co (LLY) to Hold

Eli Lilly And Co (NYSE:LLY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.

According to Zacks, “Lilly’s new products like Trulicity, Taltz, Basaglar, Cyramza, Jardiance, Lartruvo and Verzenio are expected to drive revenues. Lilly expects to launch 20 new products by 2023, including at least two new indications/line extensions on average every year. Lilly is also having a strong year in terms of its pipeline with several positive late-stage data readouts and regulatory nods. The newly launched CGRP antibody, Emgality could emerge as a significant contributor to long-term growth. It has also added promising new assets through business development deals. The stock has also outperformed the industry this year so far. However, competitive pressure on Lilly’s drugs is expected to rise this year. Challenges remain for the company in the form of generic competition for several drugs including Cialis and rising pricing pressure in the diabetes franchise.”

Several other analysts have also recently weighed in on the stock. SunTrust Banks lifted their price objective on shares of Eli Lilly And Co from $105.00 to $123.00 and gave the stock a “buy” rating in a research note on Monday, October 1st. Wolfe Research initiated coverage on shares of Eli Lilly And Co in a research note on Tuesday, October 23rd. They issued a “market perform” rating and a $119.00 price objective for the company. Cantor Fitzgerald reiterated a “buy” rating and issued a $128.00 price objective on shares of Eli Lilly And Co in a research note on Wednesday, October 17th. JPMorgan Chase & Co. set a $123.00 price objective on shares of Eli Lilly And Co and gave the stock a “buy” rating in a research note on Friday, October 5th. Finally, TheStreet cut shares of Eli Lilly And Co from a “b” rating to a “c+” rating in a research note on Friday, August 24th. Nine investment analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $111.53.

NYSE LLY opened at $116.52 on Tuesday. The company has a quick ratio of 1.53, a current ratio of 1.91 and a debt-to-equity ratio of 0.83. The stock has a market cap of $125.68 billion, a PE ratio of 27.22, a P/E/G ratio of 1.85 and a beta of 0.31. Eli Lilly And Co has a 52-week low of $73.69 and a 52-week high of $119.84.

Eli Lilly And Co (NYSE:LLY) last posted its earnings results on Tuesday, November 6th. The company reported $1.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.35 by $0.04. Eli Lilly And Co had a net margin of 1.85% and a return on equity of 42.84%. The company had revenue of $6.06 billion during the quarter, compared to analysts’ expectations of $6.04 billion. During the same quarter last year, the company posted $1.05 EPS. Eli Lilly And Co’s quarterly revenue was up 7.1% compared to the same quarter last year. As a group, equities research analysts expect that Eli Lilly And Co will post 5.58 earnings per share for the current year.

In other news, major shareholder Lilly Endowment Inc sold 180,000 shares of the business’s stock in a transaction that occurred on Friday, September 7th. The shares were sold at an average price of $106.76, for a total value of $19,216,800.00. Following the completion of the transaction, the insider now directly owns 119,832,753 shares in the company, valued at approximately $12,793,344,710.28. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Eli & Co Lilly sold 700,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 6th. The shares were sold at an average price of $14.00, for a total transaction of $9,800,000.00. Following the completion of the transaction, the insider now owns 3,148,647 shares of the company’s stock, valued at $44,081,058. The disclosure for this sale can be found here. Insiders sold a total of 2,127,300 shares of company stock valued at $166,973,853 over the last 90 days. Corporate insiders own 0.11% of the company’s stock.

Several large investors have recently modified their holdings of LLY. Welch Group LLC bought a new stake in shares of Eli Lilly And Co during the 3rd quarter valued at approximately $123,000. Zions Bancorporation bought a new stake in shares of Eli Lilly And Co during the 3rd quarter valued at approximately $128,000. Mainstay Capital Management LLC ADV grew its holdings in shares of Eli Lilly And Co by 98.0% during the 3rd quarter. Mainstay Capital Management LLC ADV now owns 1,218 shares of the company’s stock valued at $131,000 after purchasing an additional 603 shares during the last quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors bought a new stake in shares of Eli Lilly And Co during the 2nd quarter valued at approximately $114,000. Finally, Fort L.P. bought a new stake in shares of Eli Lilly And Co during the 2nd quarter valued at approximately $121,000. Institutional investors own 77.09% of the company’s stock.

About Eli Lilly And Co

Eli Lilly and Company discovers, develops, manufactures, and markets pharmaceutical products worldwide. The company operates through two segments, Human Pharmaceutical Products and Animal Health Products. It offers endocrinology products for the treatment of diabetes; osteoporosis in postmenopausal women and men; and human growth hormone deficiency and pediatric growth conditions.

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