Fintel reports that on August 9, 2023, Jefferies upgraded their outlook for Lilly (NYSE:LLY) from Hold to Buy.

Analyst Price Forecast Suggests 6.45% Downside

As of August 2, 2023, the average one-year price target for Lilly is 487.98. The forecasts range from a low of 303.00 to a high of $593.25. The average price target represents a decrease of 6.45% from its latest reported closing price of 521.60.

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The projected annual revenue for Lilly is 30,424MM, an increase of 3.08%. The projected annual non-GAAP EPS is 9.24.

Lilly Declares $1.13 Dividend

On June 26, 2023 the company declared a regular quarterly dividend of $1.13 per share ($4.52 annualized). Shareholders of record as of August 15, 2023 will receive the payment on September 8, 2023. Previously, the company paid $1.13 per share.

At the current share price of $521.60 / share, the stock’s dividend yield is 0.87%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.74%, the lowest has been 0.98%, and the highest has been 2.49%. The standard deviation of yields is 0.43 (n=236).

The current dividend yield is 2.05 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.66. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.53%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 4184 funds or institutions reporting positions in Lilly. This is an increase of 113 owner(s) or 2.78% in the last quarter. Average portfolio weight of all funds dedicated to LLY is 0.87%, an increase of 0.01%. Total shares owned by institutions decreased in the last three months by 1.68% to 869,883K shares. The put/call ratio of LLY is 0.85, indicating a bullish outlook.

What are Other Shareholders Doing?

Lilly Endowment holds 101,029K shares representing 10.64% ownership of the company. In it’s prior filing, the firm reported owning 102,544K shares, representing a decrease of 1.50%.

Pnc Financial Services Group holds 51,922K shares representing 5.47% ownership of the company. In it’s prior filing, the firm reported owning 52,036K shares, representing a decrease of 0.22%. The firm decreased its portfolio allocation in LLY by 14.43% over the last quarter.

Capital World Investors holds 27,589K shares representing 2.91% ownership of the company. In it’s prior filing, the firm reported owning 28,188K shares, representing a decrease of 2.17%. The firm decreased its portfolio allocation in LLY by 10.92% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 26,476K shares representing 2.79% ownership of the company. In it’s prior filing, the firm reported owning 25,996K shares, representing an increase of 1.81%. The firm decreased its portfolio allocation in LLY by 11.72% over the last quarter.

Primecap Management holds 25,368K shares representing 2.67% ownership of the company. In it’s prior filing, the firm reported owning 25,892K shares, representing a decrease of 2.07%. The firm decreased its portfolio allocation in LLY by 12.40% over the last quarter.

Lilly Background Information
(This description is provided by the company.)

Lilly is a global health care leader that unites caring with discovery to create medicines that make life better for people around the world. It was founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today it remains true to that mission in all its work. Across the globe, Lilly employees work to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism.

This article originally appeared on Fintel

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