Rating Worth Watching: Does Eli Lilly (NYSE:LLY) Look Bad? BMO Capital Downgrades It

November 25, 2016 - By Marie Mckinney

Rating Worth Watching:  Does Eli Lilly (NYSE:LLY) Look Bad? BMO Capital Downgrades It

Eli Lilly (NYSE:LLY) Downgrade

Trading of Eli Lilly (NYSE:LLY)‘s shares is going to be interesting today, as BMO Capital lowered the stock from a “Outperform” to a “Market Perform”. Along the rating downgrade, BMO Capital analysts gave a price target of $64.00 or -7.41% more.

Eli Lilly and Co (NYSE:LLY) Ratings Coverage

Out of 15 analysts covering Eli Lilly and Company (NYSE:LLY), 14 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 93% are positive. $125 is the highest target while $75 is the lowest. The $97.88 average target is 41.61% above today’s ($69.12) stock price. Eli Lilly and Company has been the topic of 40 analyst reports since July 23, 2015 according to StockzIntelligence Inc. The firm has “Overweight” rating given on Friday, December 18 by Atlantic Securities. On Thursday, August 27 the stock rating was initiated by Berenberg with “Buy”. The rating was upgraded by Credit Suisse on Friday, October 9 to “Outperform”. The rating was maintained by Cowen & Co on Monday, August 24 with “Outperform”. Leerink Swann maintained the shares of LLY in a report on Thursday, November 12 with “Outperform” rating. The stock has “Overweight” rating given by JP Morgan on Thursday, September 8. The stock has “Outperform” rating given by Leerink Swann on Monday, December 28. Credit Suisse upgraded the stock to “Outperform” rating in Tuesday, December 8 report. Cowen & Co maintained the shares of LLY in a report on Saturday, August 22 with “Outperform” rating. The company was initiated on Wednesday, April 6 by Societe Generale.

The stock increased 1.65% or $1.12 during the last trading session, hitting $69.12. About 8.58 million shares traded hands or 44.44% up from the average. Eli Lilly and Co (NYSE:LLY) has declined 12.63% since April 22, 2016 and is downtrending. It has underperformed by 18.04% the S&P500.

Analysts await Eli Lilly and Co (NYSE:LLY) to report earnings on January, 31 before the open. They expect $0.99 earnings per share, up 26.92% or $0.21 from last year’s $0.78 per share. LLY’s profit will be $977.97M for 17.45 P/E if the $0.99 EPS becomes a reality. After $0.88 actual earnings per share reported by Eli Lilly and Co for the previous quarter, Wall Street now forecasts 12.50% EPS growth.

Insitutional Activity: The institutional sentiment increased to 1.08 in Q2 2016. Its up 0.01, from 1.07 in 2016Q1. The ratio improved, as 54 funds sold all Eli Lilly and Co shares owned while 365 reduced positions. 88 funds bought stakes while 362 increased positions. They now own 814.98 million shares or 2.31% less from 834.25 million shares in 2016Q1.

Moreover, Marietta Invest Ptnrs Ltd Liability Company has 0.11% invested in Eli Lilly and Co (NYSE:LLY) for 4,025 shares. Cap Advisors Incorporated Ok reported 2,724 shares or 0% of all its holdings. Mirador Cap Limited Partnership holds 0.57% or 6,888 shares in its portfolio. Hsbc Hldg Public Ltd Liability Corp reported 913,114 shares or 0.2% of all its holdings. American National Ins Tx has invested 0.82% of its portfolio in Eli Lilly and Co (NYSE:LLY). Community Savings Bank Na, a New York-based fund reported 2,393 shares. Moreover, Buckingham Asset Management Llc has 0.09% invested in Eli Lilly and Co (NYSE:LLY) for 3,353 shares. Mcmillion Cap Mgmt Inc, a North Carolina-based fund reported 37,126 shares. Los Angeles Capital Mgmt And Equity Research holds 0.34% of its portfolio in Eli Lilly and Co (NYSE:LLY) for 513,165 shares. Reliance Of Delaware last reported 41,966 shares in the company. Integral Derivatives Limited Liability Co accumulated 0.02% or 10,675 shares. Trustco Natl Bank Corp N Y has 2,747 shares for 0.22% of their US portfolio. Vantage Investment Advsrs Ltd accumulated 0.15% or 4,415 shares. First Merchants Corporation holds 0.69% of its portfolio in Eli Lilly and Co (NYSE:LLY) for 26,722 shares. Stephens Ar holds 39,502 shares or 0.14% of its portfolio.

Insider Transactions: Since May 31, 2016, the stock had 1 insider purchase, and 10 sales for $120.57 million net activity. LILLY ENDOWMENT INC sold $17.13M worth of Eli Lilly and Co (NYSE:LLY) on Wednesday, June 29. $205,875 worth of Eli Lilly and Co (NYSE:LLY) shares were bought by TAI JACKSON P. 992 shares were sold by Barnes Melissa S, worth $73,180. On Tuesday, October 4 Crowe Maria A sold $182,927 worth of the stock or 2,248 shares. 1,213 Eli Lilly and Co (NYSE:LLY) shares with value of $100,873 were sold by Zakrowski Donald A.

Eli Lilly and Company is engaged in drug manufacturing business. The company has a market cap of $68.28 billion. The Firm discovers, develops, makes and markets products in two divisions: human pharmaceutical products and animal health products. It has a 30.02 P/E ratio. The Company’s human pharmaceutical business segment sells medicines, which are discovered or developed by its scientists.

According to Zacks Investment Research, “Eli Lilly and Company discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. The company directs its research efforts primarily toward the search for products to diagnose, prevent and treat human diseases. The company also conducts research to find products to treat diseases in animals and to increase the efficiency of animal food production.”

LLY Company Profile

Eli Lilly and Company, incorporated on January 17, 1901, is engaged in drug manufacturing business. The Firm discovers, develops, makes and markets products in two divisions: human pharmaceutical products and animal health products. The Company’s products are sold in over 120 countries. The Company’s human pharmaceutical business segment sells medicines, which are discovered or developed by its scientists. The Company’s animal health business segment operates through the Company’s Elanco division, which develops, makes and markets products for both food animals and companion animals. The Firm makes and distributes its products through facilities in the United States, Puerto Rico and over 10 other countries.

More notable recent Eli Lilly and Co (NYSE:LLY) news were published by: Marketwatch.com which released: “Eli Lilly shares slide premarket after company says Alzheimer’s drug trial failed” on November 23, 2016, also Marketwatch.com with their article: “Biogen in promising but risky limelight after Eli Lilly’s Alzheimer’s drug fails” published on November 25, 2016, Fool.com published: “Better Buy: Eli Lilly and Co vs. Pfizer” on October 26, 2016. More interesting news about Eli Lilly and Co (NYSE:LLY) were released by: Forbes.com and their article: “January 2017 Options Now Available For Eli Lilly (LLY)” published on November 23, 2016 as well as Schaeffersresearch.com‘s news article titled: “Buzz Stocks: Juno Therapeutics Inc, Eli Lilly and Co, and Biogen Inc” with publication date: November 23, 2016.

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