Arcadia Investment Management Boosts Stake in Eli Lilly by 64%

Arcadia Investment Management Corp MI has significantly increased its investment in Eli Lilly and Company (NYSE: LLY) by acquiring an additional 2,740 shares during the second quarter of 2023. This move raises Arcadia’s total holdings to 7,023 shares, representing a substantial 64.0% increase. According to the latest 13F filing with the Securities and Exchange Commission, these shares are now valued at approximately $5,475,000.

The investment landscape for Eli Lilly has seen considerable activity, particularly among institutional investors. PNC Financial Services Group Inc. has raised its stake in the company by a remarkable 97.5% during the first quarter, now owning 101,305,650 shares worth around $83.67 billion. Other notable investors include Vanguard Group Inc., which increased its holdings by 6.7%, and Assenagon Asset Management S.A., which boosted its share count by 106.8% in the same timeframe.

As of now, institutional investors and hedge funds collectively own 82.53% of Eli Lilly’s stock, reflecting strong confidence in the company’s future prospects.

Eli Lilly’s Stock Performance and Financial Results

Eli Lilly’s stock opened at $1,024.67 on the last trading day. The company boasts solid financial ratios, including a quick ratio of 1.00 and a current ratio of 1.28. With a market capitalization of $968.70 billion, Eli Lilly exhibits a P/E ratio of 66.97 and a beta of 0.43, indicating relative stability compared to the market.

On October 30, 2023, Eli Lilly announced its quarterly earnings, reporting earnings per share (EPS) of $7.02, surpassing analysts’ expectations of $6.42 by $0.60. The company achieved revenue of $17.60 billion for the quarter, significantly exceeding the forecasted $16.09 billion, and representing a remarkable 53.9% increase compared to the same quarter last year. Eli Lilly has set its full-year 2025 EPS guidance between $23.00 and $23.70, with analysts projecting an average EPS of $23.48 for the current year.

Dividend Announcement and Analyst Ratings

Eli Lilly also declared a quarterly dividend of $1.50, which will be paid on December 10, 2023. Shareholders on record as of November 14, 2023 are eligible for this distribution, which translates to an annualized dividend of $6.00 and a yield of 0.6%. The company’s payout ratio stands at 29.35%, indicating a balanced approach to returning value to shareholders while retaining capital for growth.

Several equity research analysts have weighed in on Eli Lilly’s stock performance. Sanford C. Bernstein reaffirmed an “outperform” rating, while HSBC raised its price target from $700.00 to $800.00. Morgan Stanley increased its target price from $1,090.00 to $1,171.00 and maintained an “overweight” rating. Conversely, Daiwa America downgraded its rating from “strong-buy” to “hold.” Currently, the consensus rating among analysts is “Moderate Buy,” with an average price target estimated at $999.28.

Eli Lilly and Company continues to thrive in the pharmaceutical industry, focusing on developing and marketing innovative treatments worldwide. The company remains a key player in diabetes care and obesity management, with products like Humalog, Trulicity, and Jardiance enhancing its portfolio. As institutional investment grows, Eli Lilly’s market position appears increasingly robust, reflecting investor confidence in its strategic direction and financial health.