Obermeyer Wealth Partners Reduces Stake in Eli Lilly by 2.4%

Obermeyer Wealth Partners has reduced its investment in Eli Lilly and Company (NYSE: LLY) by 2.4% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm now holds 16,301 shares of Eli Lilly, having divested 395 shares in the period. The value of Obermeyer’s holdings stood at approximately $12.7 million at the end of the reporting period.

This adjustment comes amid a broader trend where several institutional investors and hedge funds have actively changed their positions in Eli Lilly. Notably, PNC Financial Services Group Inc. significantly increased its stake by 97.5% in the first quarter, amassing 101,305,650 shares valued at around $83.67 billion. Meanwhile, Nuveen LLC established a new position in Eli Lilly worth approximately $4.61 billion during the same period.

Vanguard Group Inc. also boosted its holdings by 6.7%, bringing its total to 79,224,392 shares valued at about $65.43 billion. Furthermore, Assenagon Asset Management S.A. increased its stake by 106.8%, adding 765,010 shares to reach a total of 1,481,031 shares valued at approximately $1.15 billion. Goldman Sachs Group Inc. enhanced its position by 13.3%, now owning 5,821,993 shares worth around $4.81 billion. Overall, institutional investors currently hold 82.53% of Eli Lilly’s stock.

Market Performance and Analyst Ratings

As of Monday, Eli Lilly shares opened at $862.96, with a market capitalization of $816.75 billion. The company has a price-to-earnings (P/E) ratio of 56.40 and a price-to-earnings growth (P/E/G) ratio of 1.21. The stock has fluctuated between a 12-month low of $623.78 and a high of $935.63, indicating substantial volatility in its valuation.

Eli Lilly’s current ratio is 1.28, while its quick ratio stands at 1.00. The company reports a debt-to-equity ratio of 1.86, with a 50-day moving average price of $780.74 and a 200-day moving average price of $771.97.

In recent developments, Eli Lilly announced a quarterly dividend of $1.50 per share, set to be paid on December 10, 2023. Shareholders of record on November 14, 2023 will be eligible for this dividend, which translates to an annualized yield of 0.7%. The company’s dividend payout ratio currently stands at 29.35%.

Insider Transactions and Analyst Insights

In related news, CEO David A. Ricks purchased 1,632 shares on August 12, 2023, at an average price of $644.77 per share, amounting to a total investment of approximately $1.05 million. Following this transaction, Ricks now owns 546,601 shares, valued at roughly $352.43 million. Director J Erik Fyrwald also acquired 1,565 shares on the same day, costing around $1.01 million.

Over the past three months, company insiders have purchased a total of 4,514 shares worth approximately $2.89 million, highlighting ongoing confidence in the company’s prospects. Currently, insiders own 0.13% of the company’s stock.

Wall Street analysts have varying opinions on Eli Lilly’s stock. DZ Bank recently upgraded its rating from “hold” to “strong buy,” while Wall Street Zen also issued a “strong buy” rating. In contrast, Daiwa Capital Markets downgraded the stock from “outperform” to “neutral,” setting a price target of $700. Currently, analysts have issued one “strong buy,” fourteen “buy,” and nine “hold” ratings, with a consensus rating of “moderate buy” and an average target price of $940.

Eli Lilly and Company, headquartered in Indianapolis, Indiana, is a global leader in pharmaceuticals, focusing on developing and marketing innovative treatments for various medical conditions, including diabetes and obesity.