Eli Lilly and Company [NYSE: LLY] gained 0.98% or 1.42 points to close at $146.63 with a heavy trading volume of 2790544 shares. The company report on September 22, 2020 that Trulicity® (dulaglutide) is now indicated as an adjunct to diet, exercise, and standard of care therapy to reduce the risk of non-fatal stroke in adults with type 2 diabetes mellitus who have multiple cardiovascular risk factors or established cardiovascular disease.
New indication reflects distinct patient population in the REWIND study – people with type 2 diabetes with multiple cardiovascular risks or established cardiovascular disease.
On September 11, 2020, Health Canada approved Trulicity® (dulaglutide) to reduce the risk of non-fatal stroke in adults with type 2 diabetes mellitus who have multiple cardiovascular risk factors or established cardiovascular disease, as an adjunct to diet, exercise, and standard of care therapy. This decision makes Eli Lilly and Company’s Trulicity the first and only GLP1 receptor agonist (RA) approved to provide a cardiovascular benefit in people with multiple CV risk factors or with established cardiovascular disease.
It opened the trading session at $145.07, the shares rose to $147.47 and dropped to $144.18, the range by which the price of stock traded the whole day. The daily chart for LLY points out that the company has recorded 3.54% gains over the past six months. However, it is still -44.66% lower than its most recent low trading price.
If we look at the average trading volume of 3.09M shares, LLY reached to a volume of 2790544 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Eli Lilly and Company [LLY]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LLY shares is $165.13 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LLY stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Berenberg have made an estimate for Eli Lilly and Company shares, keeping their opinion on the stock as Hold, with their previous recommendation back on September 29, 2020. The new note on the price target was released on September 03, 2020, representing the official price target for Eli Lilly and Company stock. On April 21, 2020, analysts increased their price target for LLY shares from 157 to 158.
The Average True Range (ATR) for Eli Lilly and Company is set at 3.31, with the Price to Sales ratio for LLY stock in the period of the last 12 months amounting to 6.07. The Price to Book ratio for the last quarter was 32.51, with the Price to Cash per share for the same quarter was set at 2.51. Price to Free Cash Flow for LLY in the course of the last twelve months was 51.59 with Quick ratio for the last quarter at 0.90.
Trading performance analysis for LLY stock
Eli Lilly and Company [LLY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.99. With this latest performance, LLY shares dropped by -1.60% in over the last four-week period, additionally plugging by 3.54% over the last 6 months – not to mention a rise of 35.52% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LLY stock in for the last two-week period is set at 44.28, with the RSI for the last a single of trading hit 44.00, and the three-weeks RSI is set at 44.42 for Eli Lilly and Company [LLY]. The present Moving Average for the last 50 days of trading for this stock 150.82, while it was recorded at 146.08 for the last single week of trading, and 147.91 for the last 200 days.
Eli Lilly and Company [LLY]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Eli Lilly and Company [LLY] shares currently have an operating margin of +25.94 and a Gross Margin at +78.85. Eli Lilly and Company’s Net Margin is presently recorded at +20.78.
Return on Total Capital for LLY is now 27.37, given the latest momentum, and Return on Invested Capital for the company is 24.17. Return on Equity for this stock inclined to 74.59, with Return on Assets sitting at 11.15. When it comes to the capital structure of this company, Eli Lilly and Company [LLY] has a Total Debt to Total Equity ratio set at 610.90. Additionally, LLY Total Debt to Total Capital is recorded at 85.93, with Total Debt to Total Assets ending up at 40.54. Long-Term Debt to Equity for the company is recorded at 548.72, with the Long-Term Debt to Total Capital now at 77.19.
Reflecting on the efficiency of the workforce at the company, Eli Lilly and Company [LLY] managed to generate an average of $137,930 per employee. Receivables Turnover for the company is 3.80 with a Total Asset Turnover recorded at a value of 0.54.Eli Lilly and Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.20.
Eli Lilly and Company [LLY]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Eli Lilly and Company posted 1.48/share EPS, while the average EPS was predicted by analysts to be reported at 1.4/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 5.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LLY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Eli Lilly and Company go to 13.14%.
An analysis of insider ownership at Eli Lilly and Company [LLY]
There are presently around $108,743 million, or 78.70% of LLY stock, in the hands of institutional investors. The top three institutional holders of LLY stocks are: LILLY ENDOWMENT INC with ownership of 111,132,343, which is approximately -0.384% of the company’s market cap and around 11.60% of the total institutional ownership; VANGUARD GROUP INC, holding 71,605,087 shares of the stock with an approximate value of $10.5 billion in LLY stocks shares; and BLACKROCK INC., currently with $9.21 billion in LLY stock with ownership of nearly -2.285% of the company’s market capitalization.
Positions in Eli Lilly and Company stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 745 institutional holders increased their position in Eli Lilly and Company [NYSE:LLY] by around 29,912,057 shares. Additionally, 771 investors decreased positions by around 36,575,621 shares, while 312 investors held positions by with 675,125,268 shares. The mentioned changes placed institutional holdings at 741,612,946 shares, according to the latest SEC report filing. LLY stock had 166 new institutional investments in for a total of 2,239,535 shares, while 82 institutional investors sold positions of 730,668 shares during the same period.