Eli Lilly and (NYSE:LLY) to Repurchase $5.00 billion in Shares

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Eli Lilly and (NYSE:LLY) announced that its Board of Directors has approved a share repurchase plan on Monday, May 3rd, RTT News reports. The company plans to repurchase $5.00 billion in shares. This repurchase authorization permits the company to repurchase up to 2.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

LLY has been the subject of a number of research reports. Mizuho reduced their price objective on Eli Lilly and from $228.00 to $216.00 and set a “buy” rating for the company in a research note on Tuesday. Barclays reduced their price target on shares of Eli Lilly and from $232.00 to $227.00 and set an “overweight” rating for the company in a research report on Tuesday. Morgan Stanley lowered their price objective on shares of Eli Lilly and from $217.00 to $207.00 and set an “overweight” rating on the stock in a report on Tuesday. Truist lifted their price objective on shares of Eli Lilly and from $200.00 to $215.00 in a report on Monday, February 1st. Finally, Bank of America upped their target price on shares of Eli Lilly and from $195.00 to $225.00 and gave the stock a “buy” rating in a report on Friday, January 22nd. Two analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Eli Lilly and currently has a consensus rating of “Buy” and a consensus target price of $200.75.

Eli Lilly and stock traded up $2.28 during mid-day trading on Tuesday, reaching $188.20. 3,676,930 shares of the company’s stock were exchanged, compared to its average volume of 4,089,341. The business’s fifty day simple moving average is $185.40 and its 200 day simple moving average is $176.26. The company has a quick ratio of 1.06, a current ratio of 1.36 and a debt-to-equity ratio of 3.27. Eli Lilly and has a one year low of $129.21 and a one year high of $218.00. The firm has a market capitalization of $180.48 billion, a PE ratio of 30.75, a P/E/G ratio of 1.57 and a beta of 0.37.

Eli Lilly and (NYSE:LLY) last released its earnings results on Monday, April 26th. The company reported $1.87 EPS for the quarter, missing the Zacks’ consensus estimate of $2.12 by ($0.25). Eli Lilly and had a return on equity of 166.45% and a net margin of 24.01%. The business had revenue of $6.81 billion for the quarter, compared to the consensus estimate of $7.10 billion. During the same quarter in the previous year, the firm earned $1.75 earnings per share. The company’s revenue for the quarter was up 16.1% on a year-over-year basis. On average, sell-side analysts forecast that Eli Lilly and will post 7.56 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 10th. Stockholders of record on Friday, May 14th will be given a dividend of $0.85 per share. This represents a $3.40 dividend on an annualized basis and a dividend yield of 1.81%. Eli Lilly and’s dividend payout ratio is currently 56.29%.

In other Eli Lilly and news, CAO Donald A. Zakrowski sold 3,000 shares of the firm’s stock in a transaction on Wednesday, April 28th. The stock was sold at an average price of $181.38, for a total value of $544,140.00. Following the completion of the sale, the chief accounting officer now directly owns 5,987 shares of the company’s stock, valued at $1,085,922.06. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Jackson P. Tai bought 1,366 shares of the stock in a transaction on Friday, April 30th. The stock was purchased at an average price of $182.84 per share, for a total transaction of $249,759.44. Following the completion of the purchase, the director now owns 60,649 shares of the company’s stock, valued at $11,089,063.16. The disclosure for this purchase can be found here. Company insiders own 0.09% of the company’s stock.

About Eli Lilly and

Eli Lilly and Company discovers, develops, manufactures, and markets human pharmaceutical products worldwide. It offers Baqsimi for severe hypoglycemia; Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, Humulin U-500, and Lyumjev for diabetes; and Jardiance, Trajenta, and Trulicity for type 2 diabetes.

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