Eli Lilly and Company (NYSE: LLY): The Best-Of-Breed For Investing?


BlackRock Fund Advisors recently announced the acquisition of new stake in Eli Lilly and Company (NYSE:LLY). The institutional investor has increased its shareholding in the Healthcare company by 4.07% to 44.51 million shares with purchase of 1.74 million shares. This fresh investment now brings its stake to 4.65% valued currently at $7.31 billion. In addition, Fidelity Management & Research Co… raised its holdings by 13.58 million to 26.5 million shares. And Geode Capital Management LLC has lifted its position by 2.19% or 0.27 million shares – to 12.65 million shares.

With over 5.34 million Eli Lilly and Company (LLY) shares trading Friday and a closing price of $150.29 on the day, the dollar volume was approximately $802.83 million. The shares have shown a negative weekly performance of -5.80% and its price on 07/31/20 lost nearly -1.77%. Currently, there are 908.20M common shares owned by the public and among those 793.65M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for LLY have a consensus price objective of $172.08. The analysts have set the share’s price value over the next 12 months at a high of $190.00 and a low of $148.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Eli Lilly and Company stock is 2.40 for the next 12 months. The average price target is 7.76% above its last price level and an upside to the estimated low will see the stock lose -1.55% over that period. But an upside of 20.9% will see the stock hit the forecast high price target while mean target price for the stock is $175.00.

Insiders at the company have transacted a total of 180 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 59 of these insider trades were purchases, accounting for 315,055 shares. Insider sales of the common stock occurred on 121 occasions, with total insider shares sold totaling 5,916,517 shares.

The top 3 mutual fund holders in Eli Lilly and Company are Vanguard Total Stock Market Index, Vanguard PRIMECAP Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 24.54 million shares of the company’s stock, all valued at over $4.03 billion. The company sold -0.38 million shares recently to bring their total holdings to about 2.56% of the shares outstanding. Vanguard PRIMECAP Fund sold -0.29 million shares to see its total holdings shrink to 22.49 million shares valued at over $3.69 billion and representing 2.35% of the shares outstanding. Vanguard 500 Index Fund bought 0.22 million shares to bring its total holdings to over 17.47 million shares at a value of $2.87 billion. Vanguard 500 Index Fund now owns shares totaling to 1.83% of the shares outstanding.

Shares of Eli Lilly and Company (NYSE: LLY) opened at $153.13, up $0.13 from a prior closing price of $153.00. However, the script later closed the day at $150.29, down -1.77%. The company’s stock has a 5-day price change of -5.80% and -2.17% over the past three months. LLY shares are trading 14.35% year to date (YTD), with the 12-month market performance up to 36.00% higher. It has a 12-month low price of $101.36 and touched a high of $170.75 over the same period. Currently, 5.34 million shares have been traded, compared to an average intraday trading volume of 3.49 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -8.22%, -4.92%, and 7.48% respectively.

Institutional ownership of Eli Lilly and Company (NYSE: LLY) shares accounts for 81.30% of the company’s 908.20M shares outstanding. Mutual fund holders own 27.24%, while other institutional holders and individual stakeholders account for 40.36% and 12.31% respectively.

It has a market capitalization of $145.53B and a beta (3y monthly) value of 0.25. The stock’s trailing 12-month PE ratio is 24.92, while the earnings-per-share (ttm) stands at $6.03. The company has a PEG of 1.85 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 5.60. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.83% over the week and 2.32% over the month.

Analysts forecast that Eli Lilly and Company (LLY) will achieve an EPS of $1.7 for the current quarter, $1.82 for the next quarter and $7.93 for 2021. The lowest estimate earnings-per-share for the quarter is $1.5 while analysts give the company a high EPS estimate of $1.87. Comparatively, EPS for the current quarter was $1.48 a year ago. Earnings per share for the fiscal year are expected to increase by 54.10%, and 16.67% over the next financial year. EPS should shrink at an annualized rate of 13.47% over the next five years, compared to 17.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Eli Lilly and Company (LLY) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 7 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the LLY, a number of firms have released research notes about the stock. Guggenheim stated their Buy rating for the stock in a research note on June 16, 2020, with the firm’s price target at . UBS coverage for the Eli Lilly and Company (LLY) stock in a research note released on April 21, 2020 offered a Neutral rating with a price target of $158. Morgan Stanley was of a view on April 09, 2020 that the stock is Equal-Weight, while Mizuho gave the stock Neutral rating on February 06, 2020, issuing a price target of . Morgan Stanley on their part issued Overweight rating on December 18, 2019.


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