Eli Lilly and Company (NYSE: LLY) received a consensus recommendation of “Moderate Buy” from twenty-six brokerages currently covering the pharmaceutical giant. According to MarketBeat, five analysts rated the stock as a hold, while seventeen assigned a buy recommendation and four designated it as a strong buy. The average target price over the next year among these analysts is set at approximately $1,155.36.
Several research firms have recently updated their assessments of Eli Lilly. Leerink Partners upgraded the rating from hold to strong buy on November 10, 2023. Meanwhile, HSBC Global Research changed its rating from moderate sell to hold on August 27, 2023. Wolfe Research increased their target price from $1,050.00 to $1,250.00, giving the stock an “outperform” rating in a note on December 3, 2023. Truist Financial raised its price target from $1,038.00 to $1,182.00, while Goldman Sachs Group increased its price objective from $951.00 to $1,145.00, both maintaining buy ratings.
Strong Earnings Report and Dividend Announcement
Eli Lilly’s stock recently traded up by 0.3% following the release of its quarterly earnings results on October 30, 2023. The company reported earnings per share (EPS) of $7.02, exceeding analyst expectations of $6.42 by $0.60. Revenue reached $17.60 billion, significantly surpassing the forecast of $16.09 billion. This performance marks a 53.9% increase in revenue compared to the same quarter last year, when the company recorded an EPS of $1.18.
Eli Lilly has also set its fiscal year 2025 guidance at an EPS range of $23.00 to $23.70. Analysts project an average EPS of $23.48 for the current fiscal year.
In an additional financial move, Eli Lilly announced a quarterly dividend of $1.73 per share, scheduled for payment on March 10, 2024. Shareholders on record as of February 13, 2024 will be eligible for this payment, which is an increase from the previous quarterly dividend of $1.50. This adjustment represents an annualized dividend of $6.92 and a yield of 0.6%, with a dividend payout ratio of 29.35%.
Institutional Investor Activities
Recent activity among institutional investors has seen several large entities adjust their holdings in Eli Lilly. Wealth Preservation Advisors LLC entered a new position during the first quarter, investing around $27,000. Similarly, Sumitomo Mitsui Financial Group Inc. acquired a new stake valued at $27,000 in the second quarter. Vermillion & White Wealth Management Group LLC increased its position by 84.2% during the third quarter, now owning 35 shares valued at $27,000.
Additionally, Evolution Wealth Management Inc. and Steph & Co. have also made new acquisitions, the latter increasing its stake by 290.0%. Institutional investors and hedge funds collectively own 82.53% of Eli Lilly’s stock.
Eli Lilly and Company, founded in 1876 and headquartered in Indianapolis, Indiana, specializes in researching, developing, manufacturing, and commercializing a broad range of medicines and therapies. The company maintains a significant presence in North America, Europe, Asia, and other regions, serving both developed and emerging markets under the leadership of President and Chief Executive Officer David A..
This week’s developments underscore Eli Lilly’s robust financial performance and positive outlook, as analysts and investors react favorably to the company’s growth and strategic decisions.
