Eli Lilly and Company (NYSE:LLY) Stock Falls 1.9% – Should You Sell?

Eli Lilly and Company (NYSE:LLY)’s stock price traded down 1.9% during mid-day trading on Wednesday. The stock traded as low as $1,155.27 and last traded at $1,161.7290. Approximately 3,386,206 shares changed hands during mid-day trading, an increase of 13% from the average session volume of 2,996,803 shares. The stock had previously closed at $1,184.63.

Trending Headlines about Eli Lilly and Company

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

• Positive Sentiment: Lilly reported that its experimental EloraTZP combination of eloralintide and tirzepatide produced average weight loss of up to 23.3% in a Phase 2b trial, versus 14.8% for Zepbound 15 mg alone. The combination also delivered greater A1C reductions, and Lilly plans to begin Phase 3 testing in the fourth quarter of 2026. Lilly EloraTZP trial results
• Positive Sentiment: Late-stage data for retatrutide showed adults with type 2 diabetes and obesity lost nearly 21% of body weight, or about 50 pounds at the highest dose, while also improving blood sugar. The results strengthen Lilly’s long-term opportunity in obesity treatment, although the drug remains investigational. Retatrutide diabetes trial
• Positive Sentiment: Lilly’s Ebglyss met its primary and secondary endpoints in a Phase 3b trial for moderate-to-severe hand and foot atopic dermatitis, with more than half of patients achieving clear or almost clear skin by Week 16. This supports growth beyond the company’s diabetes and obesity franchise. Ebglyss dermatitis trial
• Neutral Sentiment: The broader healthcare sector was softer, creating a macro headwind for LLY despite its company-specific trial wins. Speculation that Lilly could eventually split its high-priced shares is not an earnings or valuation catalyst by itself. Healthcare sector update
• Negative Sentiment: Novo Nordisk said a real-world study found that patients escalating Ozempic to 2 mg had a lower observed risk of major cardiovascular events than patients who switched to Lilly’s Mounjaro. Although not a randomized head-to-head trial, the claim challenges Lilly’s competitive position in diabetes care. Novo cardiovascular study
• Negative Sentiment: Australian doctors criticized Lilly’s move to deliver Mounjaro directly to patients’ homes, arguing that bypassing in-person medical oversight could raise safety and prescribing concerns. The controversy may create regulatory and reputational risk as Lilly expands access. Mounjaro delivery criticism

Wall Street Analyst Weigh In

Several analysts recently weighed in on LLY shares. Cantor Fitzgerald increased their price target on Eli Lilly and Company from $1,350.00 to $1,410.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. UBS Group set a $1,376.00 price objective on shares of Eli Lilly and Company in a research report on Friday, August 7th. Berenberg Bank set a $1,400.00 target price on shares of Eli Lilly and Company and gave the stock a “buy” rating in a report on Tuesday, September 15th. Bank of America lifted their price target on shares of Eli Lilly and Company from $1,251.00 to $1,334.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Finally, HSBC increased their price objective on shares of Eli Lilly and Company from $850.00 to $940.00 and gave the stock a “reduce” rating in a research report on Thursday, September 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Eli Lilly and Company presently has a consensus rating of “Moderate Buy” and an average price target of $1,311.96.

Eli Lilly and Company Stock Performance

The firm has a market capitalization of $1.09 trillion, a P/E ratio of 38.98, a P/E/G ratio of 1.46 and a beta of 0.50. The firm has a 50-day moving average price of $1,178.09 and a two-hundred day moving average price of $1,085.91. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.35 and a quick ratio of 1.00.

Eli Lilly and Company (NYSE:LLY) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $8.38 EPS for the quarter, topping analysts’ consensus estimates of $6.40 by $1.98. The firm had revenue of $22.97 billion for the quarter, compared to analysts’ expectations of $20.82 billion. Eli Lilly and Company had a net margin of 33.53% and a return on equity of 97.83%. The business’s revenue for the quarter was up 47.7% on a year-over-year basis. During the same period in the prior year, the business posted $6.31 earnings per share. Eli Lilly and Company has set its FY 2026 guidance at 35.500-36.500 EPS. On average, analysts forecast that Eli Lilly and Company will post 36.62 EPS for the current fiscal year.

Insider Transactions at Eli Lilly and Company

In related news, EVP Patrik Jonsson sold 6,500 shares of the stock in a transaction that occurred on 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 transaction, the executive vice president owned 54,147 shares of the company’s stock, valued at $63,628,139.70. This represents a 10.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Donald A. Zakrowski sold 2,000 shares of the firm’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $1,185.01, for a total value of $2,370,020.00. Following the transaction, the chief accounting officer owned 1,526 shares in the company, valued at $1,808,325.26. The trade was a 56.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 13,500 shares of company stock valued at $15,958,170. 0.14% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Eli Lilly and Company

Hedge funds and other institutional investors have recently made changes to their positions in the company. Coastal Bridge Advisors LLC purchased a new stake in shares of Eli Lilly and Company during the 2nd quarter valued at $2,959,000. Mosaic Family Wealth Partners LLC boosted its holdings in Eli Lilly and Company by 70.6% in the second quarter. Mosaic Family Wealth Partners LLC now owns 3,455 shares of the company’s stock valued at $4,144,000 after acquiring an additional 1,430 shares during the last quarter. Moran Wealth Management LLC boosted its holdings in Eli Lilly and Company by 85.6% in the second quarter. Moran Wealth Management LLC now owns 20,903 shares of the company’s stock valued at $25,072,000 after acquiring an additional 9,638 shares during the last quarter. Generali Investments Management Co LLC increased its stake in Eli Lilly and Company by 17.5% during the second quarter. Generali Investments Management Co LLC now owns 10,220 shares of the company’s stock worth $12,258,000 after acquiring an additional 1,521 shares during the last quarter. Finally, Amundi increased its stake in Eli Lilly and Company by 9.9% during the first quarter. Amundi now owns 5,055,025 shares of the company’s stock worth $4,649,464,000 after acquiring an additional 454,549 shares during the last quarter. Institutional investors own 82.53% of the company’s stock.

About Eli Lilly and Company

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.