Eli Lilly and Company (NYSE:LLY) Shares Down 1.3% – Should You Sell?

Eli Lilly and Company (NYSE:LLY) shares fell 1.3% during trading on Tuesday. The company traded as low as $1,158.41 and last traded at $1,167.0070. 1,836,608 shares traded hands during trading, a decline of 38% from the average session volume of 2,952,272 shares. The stock had previously closed at $1,182.62.

Eli Lilly and Company News Roundup

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

• Positive Sentiment: Retatrutide is viewed as a potentially major next-generation obesity treatment, with the possibility of becoming a growth driver larger than Zepbound if clinical results and regulatory progress remain favorable. Eli Lilly Reports Earnings on Oct. 29
• Positive Sentiment: Prelude Therapeutics is collaborating with Lilly to test the experimental cancer drug PRT13722 alongside Verzenio and Inluriyo in HR-positive, HER2-negative breast cancer. Patient enrollment is expected to begin in the fourth quarter of 2026, offering Lilly another opportunity to expand beyond its cardiometabolic franchise. Prelude Announces Clinical Trial Collaboration with Lilly
• Positive Sentiment: Analyst earnings estimates remain supportive. Erste Group raised its forecasts to $36.55 per share for fiscal 2026 and $47.30 for fiscal 2027, above the current consensus estimate of $36.19 for 2026. Eli Lilly analyst estimates
• Positive Sentiment: Royal Bank of Canada reaffirmed an Outperform rating with a $1,500 price target, citing continued strength in diabetes and weight-loss drug sales and the potential for a higher revenue outlook. Royal Bank of Canada reiterates Outperform rating
• Neutral Sentiment: Lilly’s Taltz-Zepbound combination produced broader biomarker changes, greater skin clearance and weight loss in a Phase 3b psoriasis study, but the commercial significance of the results remains to be established. Lilly reports Phase IIIb data on Taltz and Zepbound
• Negative Sentiment: Investors remain sensitive to valuation: Lilly trades at a premium multiple after substantial gains, increasing the risk of profit-taking or disappointment if earnings guidance and pipeline updates do not exceed elevated expectations. A retatrutide combination also generated more weight loss than Zepbound but had materially higher discontinuation rates, highlighting execution and tolerability risks. Retatrutide combination study results

Wall Street Analyst Weigh In

LLY has been the topic of several recent analyst reports. Leerink Partners lifted their target price on Eli Lilly and Company from $1,119.00 to $1,232.00 and gave the company an “outperform” rating in a research note on Thursday, June 25th. Wells Fargo & Company raised their target price on shares of Eli Lilly and Company from $1,280.00 to $1,330.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Berenberg Bank set a $1,400.00 price objective on Eli Lilly and Company and gave the stock a “buy” rating in a report on Tuesday, September 15th. Wall Street Zen cut Eli Lilly and Company from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 23rd. 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 company an “outperform” rating in a research report on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $1,313.43.

Eli Lilly and Company Trading Down 1.3%

The company’s 50 day moving average price is $1,175.57 and its 200 day moving average price is $1,100.31. The company has a market cap of $1.10 trillion, a price-to-earnings ratio of 39.16, a price-to-earnings-growth ratio of 1.47 and a beta of 0.46. The company has a debt-to-equity ratio of 1.41, a quick ratio of 1.00 and a current ratio of 1.35.

Eli Lilly and Company (NYSE:LLY) last released its quarterly earnings results on Wednesday, August 5th. The company reported $8.38 earnings per share for the quarter, beating analysts’ consensus estimates of $6.40 by $1.98. Eli Lilly and Company had a net margin of 33.53% and a return on equity of 97.83%. The business had revenue of $22.97 billion for the quarter, compared to the consensus estimate of $20.82 billion. During the same quarter last year, the firm earned $6.31 EPS. Eli Lilly and Company’s revenue for the quarter was up 47.7% on a year-over-year basis. Eli Lilly and Company has set its FY 2026 guidance at 35.500-36.500 EPS. Research analysts anticipate that Eli Lilly and Company will post 36.19 EPS for the current year.

Insiders Place Their Bets

In other Eli Lilly and Company news, EVP Patrik Jonsson sold 6,500 shares of the business’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $1,175.10, for a total value of $7,638,150.00. Following the completion of the sale, the executive vice president owned 54,147 shares of the company’s stock, valued at $63,628,139.70. The trade was a 10.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 company’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $1,190.00, for a total value of $5,950,000.00. Following the sale, the executive vice president owned 11,875 shares of the company’s stock, valued at approximately $14,131,250. This trade represents a 29.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 13,500 shares of company stock valued at $15,958,170 over the last quarter. Insiders own 0.14% of the company’s stock.

Hedge Funds Weigh In On Eli Lilly and Company

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Osbon Capital Management LLC acquired a new stake in Eli Lilly and Company in the 4th quarter valued at approximately $25,000. Basso Capital Management L.P. bought a new position in Eli Lilly and Company in the 4th quarter worth approximately $30,000. Maseco LLP lifted its holdings in shares of Eli Lilly and Company by 466.7% during the first quarter. Maseco LLP now owns 34 shares of the company’s stock worth $31,000 after buying an additional 28 shares during the last quarter. Aventus Investment Advisors Inc. lifted its holdings in shares of Eli Lilly and Company by 270.0% during the first quarter. Aventus Investment Advisors Inc. now owns 37 shares of the company’s stock worth $34,000 after buying an additional 27 shares during the last quarter. Finally, Marshall & Sterling Wealth Advisors Inc. boosted its position in shares of Eli Lilly and Company by 60.0% in the first quarter. Marshall & Sterling Wealth Advisors Inc. now owns 40 shares of the company’s stock valued at $37,000 after acquiring an additional 15 shares during the period. Institutional investors and hedge funds own 82.53% of the company’s stock.

Eli Lilly and Company Company Profile

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.