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

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Eli Lilly And Co (NYSE:LLY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Lilly beat estimates for earnings in the first quarter.  However, Lilly lowered its sales guidance for 2019.  Revenue growth in 2019 is expected to be driven by higher demand for its newer drugs including Trulicity, Jardiance, Taltz, Verzenio and new migraine drug, Emgality as some older drugs like Cialis face generic competition. Lilly has made significant pipeline progress in the past year with several positive late-stage data readouts, multiple approvals and regulatory submissions. Lilly also added promising new pipeline assets through business development deals. The stock has outperformed the industry in the past year. However, competitive pressure on Lilly’s drugs is expected to rise in 2019. Generic competition for several drugs including Cialis, rising pricing pressure, currency headwinds and the impact of the failed Lartruvo study are expected to put pressure on the top line.”

LLY has been the subject of several other research reports. Citigroup set a $124.00 target price on shares of Eli Lilly And Co and gave the stock a “hold” rating in a research note on Tuesday, February 26th. Cantor Fitzgerald reaffirmed a “buy” rating on shares of Eli Lilly And Co in a research note on Monday, February 4th. Guggenheim lowered shares of Eli Lilly And Co from a “buy” rating to a “neutral” rating and set a $125.84 target price for the company. in a research note on Thursday, April 11th. Barclays reissued a “buy” rating and issued a $140.00 price objective on shares of Eli Lilly And Co in a research note on Sunday, April 14th. Finally, Credit Suisse Group set a $121.00 price objective on shares of Eli Lilly And Co and gave the company a “hold” rating in a research note on Friday, March 22nd. Eleven research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. Eli Lilly And Co currently has an average rating of “Buy” and an average price target of $118.15.

LLY stock traded up $0.96 during mid-day trading on Tuesday, hitting $117.19. 825,532 shares of the company were exchanged, compared to its average volume of 12,748,650. The company has a debt-to-equity ratio of 5.50, a current ratio of 1.12 and a quick ratio of 0.85. The firm has a market cap of $112.63 billion, a PE ratio of 21.12, a price-to-earnings-growth ratio of 2.06 and a beta of 0.27. Eli Lilly And Co has a 12-month low of $81.61 and a 12-month high of $132.13.

Eli Lilly And Co (NYSE:LLY) last announced its earnings results on Tuesday, April 30th. The company reported $1.33 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.32 by $0.01. The company had revenue of $5.09 billion during the quarter, compared to analyst estimates of $5.12 billion. Eli Lilly And Co had a net margin of 26.13% and a return on equity of 56.62%. Eli Lilly And Co’s revenue was up 2.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.31 earnings per share. Sell-side analysts anticipate that Eli Lilly And Co will post 5.66 EPS for the current fiscal year.

In other news, SVP Alfonso G. Zulueta sold 10,000 shares of Eli Lilly And Co stock in a transaction on Friday, April 12th. The shares were sold at an average price of $124.65, for a total value of $1,246,500.00. Following the transaction, the senior vice president now directly owns 57,806 shares of the company’s stock, valued at approximately $7,205,517.90. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Christi Shaw sold 7,577 shares of Eli Lilly And Co stock in a transaction on Friday, May 3rd. The shares were sold at an average price of $117.14, for a total transaction of $887,569.78. Following the completion of the transaction, the senior vice president now directly owns 500 shares in the company, valued at $58,570. The disclosure for this sale can be found here. Insiders sold a total of 640,959 shares of company stock worth $81,539,352 over the last ninety days. Corporate insiders own 0.11% of the company’s stock.

Several institutional investors have recently made changes to their positions in LLY. Vanguard Group Inc grew its position in Eli Lilly And Co by 0.7% in the 3rd quarter. Vanguard Group Inc now owns 74,132,985 shares of the company’s stock valued at $7,955,211,000 after buying an additional 511,752 shares during the last quarter. BlackRock Inc. boosted its position in shares of Eli Lilly And Co by 3.0% during the 4th quarter. BlackRock Inc. now owns 68,956,519 shares of the company’s stock worth $7,979,649,000 after purchasing an additional 2,030,845 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its position in shares of Eli Lilly And Co by 17,720.8% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 42,420,406 shares of the company’s stock worth $367,000 after purchasing an additional 42,182,367 shares in the last quarter. FMR LLC boosted its position in shares of Eli Lilly And Co by 1.7% during the 1st quarter. FMR LLC now owns 13,916,001 shares of the company’s stock worth $1,805,741,000 after purchasing an additional 228,920 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Eli Lilly And Co by 6.8% during the 4th quarter. Geode Capital Management LLC now owns 13,108,002 shares of the company’s stock worth $1,514,582,000 after purchasing an additional 830,689 shares in the last quarter. 84.49% of the stock is currently owned by institutional investors and hedge funds.

About Eli Lilly And Co

Eli Lilly and Company discovers, develops, manufactures, and markets pharmaceutical products worldwide. The company operates in 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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