Eli Lilly and Company (NYSE:LLY) Stock Falls 1.6% – What’s Next?

Eli Lilly and Company (NYSE:LLY) shares were down 1.6% during mid-day trading on Thursday. The company traded as low as $1,131.21 and last traded at $1,169.7650. Approximately 3,074,844 shares traded hands during trading, an increase of 3% from the average daily volume of 2,974,658 shares. The stock had previously closed at $1,188.72.

Eli Lilly and Company News Roundup

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: New Phase 3b TOGETHER-PsO data showed that combining Taltz with Zepbound produced broader biological effects than Taltz alone in adults with psoriasis and obesity. By Week 36, the combination changed 482 proteins versus 140 with Taltz alone and affected 467 genes versus 16, alongside improved skin clearance and weight loss. The findings could strengthen Lilly’s case for treating interconnected metabolic and inflammatory conditions. New Phase 3b data on Lilly’s Taltz and Zepbound
• Positive Sentiment: Analyst Cantor Fitzgerald raised its Eli Lilly price target to $1,440 from $1,410 and maintained an Overweight rating, implying meaningful upside based on continued obesity-drug demand and pipeline execution. Cantor Fitzgerald raises pharma price targets
• Positive Sentiment: Recent coverage continues to highlight strong Zepbound demand, potential retatrutide and Foundayo catalysts, and expansion in oncology and Alzheimer’s research. Lilly’s second-quarter revenue growth of roughly 48% and raised outlook provide fundamental support for the long-term growth narrative.
• Neutral Sentiment: Despite its growth profile, Lilly trades below its historical average forward earnings multiple. That may indicate a valuation opportunity, but it also reflects investor concerns about competition, pricing pressure and whether the company’s exceptional growth can continue.
• Neutral Sentiment: Lilly and Nvidia reportedly plan to commit up to $1 billion to an artificial-intelligence drug-discovery laboratory. The initiative may improve future research productivity, although it is unlikely to materially affect near-term earnings. Nvidia and Eli Lilly AI drug-discovery lab
• Negative Sentiment: Lilly’s largest shareholder filed to sell approximately $347 million of stock. The transaction may be routine portfolio management, but its size can raise concerns about insider or major-holder confidence and create additional supply.
• Negative Sentiment: The company is facing a lawsuit from a patient alleging stomach problems linked to Mounjaro and Trulicity. Litigation creates regulatory, legal and reputational risk, although the financial impact remains uncertain.

Analyst Ratings Changes

A number of research analysts recently weighed in on LLY shares. Citigroup raised their price target on shares of Eli Lilly and Company from $1,500.00 to $1,600.00 and gave the company a “buy” rating in a research note on Wednesday, July 15th. Leerink Partners boosted their price objective on shares of Eli Lilly and Company from $1,119.00 to $1,232.00 and gave the stock an “outperform” rating in a research report on Thursday, June 25th. Truist Financial increased their price target on shares of Eli Lilly and Company from $1,370.00 to $1,376.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. HSBC raised their target price on shares of Eli Lilly and Company from $850.00 to $940.00 and gave the stock a “reduce” rating in a research note on Thursday, September 10th. Finally, Sanford C. Bernstein boosted their price objective on shares of Eli Lilly and Company from $1,300.00 to $1,385.00 and gave the stock an “outperform” rating in a report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $1,313.43.

Eli Lilly and Company Stock Performance

The stock has a 50-day simple moving average of $1,174.35 and a 200-day simple moving average of $1,097.02. The stock has a market cap of $1.11 trillion, a PE ratio of 39.52, a P/E/G ratio of 1.44 and a beta of 0.46. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.35 and a quick ratio of 1.00.

Eli Lilly and Company (NYSE:LLY) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $8.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.40 by $1.98. The company had revenue of $22.97 billion during the quarter, compared to the consensus estimate of $20.82 billion. Eli Lilly and Company had a net margin of 33.53% and a return on equity of 97.83%. Eli Lilly and Company’s revenue for the quarter was up 47.7% on a year-over-year basis. During the same quarter last year, the company earned $6.31 earnings per share. Eli Lilly and Company has set its FY 2026 guidance at 35.500-36.500 EPS. Equities analysts predict that Eli Lilly and Company will post 36.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Patrik Jonsson sold 6,500 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $1,175.10, for a total transaction of $7,638,150.00. Following the sale, the executive vice president directly owned 54,147 shares of the company’s stock, valued at approximately $63,628,139.70. This represents a 10.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Anat Hakim sold 5,000 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $1,190.00, for a total transaction of $5,950,000.00. Following the completion of the transaction, the executive vice president owned 11,875 shares in the company, valued at approximately $14,131,250. The trade was a 29.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 13,500 shares of company stock valued at $15,958,170 in the last ninety days. Corporate insiders own 0.14% of the company’s stock.

Institutional Trading of Eli Lilly and Company

Institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. boosted its position in shares of Eli Lilly and Company by 1.6% during the second quarter. BlackRock Inc. now owns 67,540,400 shares of the company’s stock worth $81,009,981,000 after buying an additional 1,046,558 shares during the period. State Street Corp grew its holdings in Eli Lilly and Company by 1.7% during the second quarter. State Street Corp now owns 36,215,754 shares of the company’s stock worth $43,438,262,000 after acquiring an additional 605,752 shares during the period. Bank of America Corp DE acquired a new stake in Eli Lilly and Company during the second quarter valued at approximately $13,522,666,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Eli Lilly and Company by 1.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,209,385 shares of the company’s stock worth $8,647,153,000 after acquiring an additional 137,364 shares in the last quarter. Finally, Jennison Associates LLC boosted its position in shares of Eli Lilly and Company by 7.9% in the 2nd quarter. Jennison Associates LLC now owns 5,461,416 shares of the company’s stock valued at $6,550,587,000 after purchasing an additional 400,538 shares during the period. 82.53% of the stock is currently owned by institutional investors and hedge funds.

About Eli Lilly and Company

Eli Lilly and Company is a global pharmaceutical company headquartered in Indianapolis, Indiana. Founded in 1876 by Colonel Eli Lilly, the company researches, develops, manufactures and markets medicines for a range of conditions, including diabetes, obesity, cancer, immunological disorders, neurological diseases and pain.

Its products include Mounjaro and Zepbound, which contain tirzepatide and are used for type 2 diabetes and chronic weight management, respectively. Other key medicines include Trulicity for diabetes, Verzenio for certain breast cancers, Taltz for inflammatory and autoimmune conditions, Humalog insulin, and Kisunla for early symptomatic Alzheimer’s disease.