Eli Lilly and Company (NYSE: LLY) has attracted attention from analysts, receiving a consensus recommendation of “Moderate Buy” from twenty-six brokerages currently covering the company. According to MarketBeat, the average one-year target price among these analysts is set at $1,155.36. The breakdown of recommendations shows that five analysts suggest holding the stock, seventeen advocate for buying, and four classify it as a strong buy.
In recent assessments, several investment firms have adjusted their ratings on Eli Lilly. On November 10, 2023, Leerink Partners elevated its rating from “hold” to “strong buy.” On August 27, 2023, HSBC Global Research upgraded the stock from “moderate sell” to “hold.” Furthermore, Wolfe Research increased their target price from $1,050.00 to $1,250.00, giving the company an “outperform” rating in a note dated December 3, 2023. Similarly, Truist Financial raised its target from $1,038.00 to $1,182.00 with a “buy” rating, while The Goldman Sachs Group adjusted its price objective from $951.00 to $1,145.00, also designating the stock as a “buy.”
Strong Earnings Report Fuels Investor Confidence
Eli Lilly published its quarterly earnings results on October 30, 2023, showcasing positive financial performance. The company reported earnings per share (EPS) of $7.02, exceeding the consensus estimate of $6.42 by $0.60. Revenue for the quarter stood at $17.60 billion, significantly surpassing analyst forecasts of $16.09 billion. This marked a remarkable 53.9% increase in revenue compared to the same period last year, during which it posted an EPS of $1.18.
Eli Lilly’s return on equity was reported at 109.52%, with a net margin of 30.99%. For the fiscal year 2025, the company has provided guidance indicating an expected EPS range of $23.00 to $23.70. Analysts are forecasting an average EPS of $23.48 for the current fiscal year.
Dividend Increase Reflects Financial Health
In addition to its robust earnings, Eli Lilly has declared a quarterly dividend of $1.73, set to be paid on March 10, 2024. Shareholders on record as of February 13, 2024, will receive this dividend, which represents an increase from the previous quarterly dividend of $1.50. This adjustment translates to an annualized dividend of $6.92 and a dividend yield of 0.6%. The dividend payout ratio currently stands at 29.35%, reflecting the company’s commitment to returning value to shareholders.
Institutional Investment Trends
Recent activity among institutional investors indicates a growing interest in Eli Lilly. Notably, Wealth Preservation Advisors LLC acquired a new position in the first quarter valued at approximately $27,000. Similarly, Sumitomo Mitsui Financial Group Inc. and Vermillion & White Wealth Management Group LLC each purchased new positions in the company during the second quarter, also valued around $27,000. Vermillion & White increased their holdings by 84.2% during the third quarter, now owning 35 shares of the stock worth $27,000.
Other notable transactions include Evolution Wealth Management Inc., which acquired a new position valued at $29,000, and Steph & Co., which raised their position by 290.0% during the same period. Currently, institutional investors and hedge funds hold approximately 82.53% of Eli Lilly’s stock.
Eli Lilly and Company, founded in 1876 and headquartered in Indianapolis, Indiana, is a leading global pharmaceutical entity engaged in the research, development, manufacturing, and commercialization of a wide range of medications and therapies. The company operates in various markets, serving both developed and emerging regions worldwide under the leadership of President and Chief Executive Officer David A. Ricks.
