What Will Happen to Eli Lilly and Co Next? The Stock Just Had Huge Bearish Options Activity

 What Will Happen to Eli Lilly and Co Next? The Stock Just Had Huge Bearish Options Activity

In today’s session Eli Lilly and Co (LLY) recorded an unusually high (2,576) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious LLY decrease. With 2,576 contracts traded and 60494 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: LLY170120P00060000 closed last at: $0.45 or 43.8% down. About 2.05M shares traded hands. Eli Lilly and Co (NYSE:LLY) has declined 11.32% since April 25, 2016 and is downtrending. It has underperformed by 17.33% the S&P500.

Analysts await Eli Lilly and Co (NYSE:LLY) to report earnings on January, 31 before the open. They expect $0.99 earnings per share, up 26.92% or $0.21 from last year’s $0.78 per share. LLY’s profit will be $1.11 billion for 17.09 P/E if the $0.99 EPS becomes a reality. After $0.88 actual earnings per share reported by Eli Lilly and Co for the previous quarter, Wall Street now forecasts 12.50% EPS growth.

Eli Lilly and Co (NYSE:LLY) Ratings Coverage

Out of 15 analysts covering Eli Lilly and Company (NYSE:LLY), 12 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 80% are positive. $125 is the highest target while $64 is the lowest. The $95.63 average target is 41.32% above today’s ($67.67) stock price. Eli Lilly and Company has been the topic of 42 analyst reports since July 23, 2015 according to StockzIntelligence Inc. The firm has “Buy” rating by Jefferies given on Friday, September 18. On Tuesday, December 8 the stock rating was upgraded by Credit Suisse to “Outperform”. The rating was upgraded by JP Morgan on Thursday, September 8 to “Overweight”. Cowen & Co maintained the stock with “Outperform” rating in Monday, August 24 report. The firm has “Buy” rating by Deutsche Bank given on Monday, December 7. As per Friday, November 25, the company rating was downgraded by Atlantic Securities. On Friday, October 9 the stock rating was upgraded by Credit Suisse to “Outperform”. Leerink Swann maintained it with “Outperform” rating and $93.0 target price in Thursday, November 12 report. On Saturday, August 22 the stock rating was maintained by Cowen & Co with “Outperform”. The stock of Eli Lilly and Co (NYSE:LLY) earned “Outperform” rating by Leerink Swann on Monday, December 28.

According to Zacks Investment Research, “Eli Lilly and Company discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. The company directs its research efforts primarily toward the search for products to diagnose, prevent and treat human diseases. The company also conducts research to find products to treat diseases in animals and to increase the efficiency of animal food production.”

Insitutional Activity: The institutional sentiment increased to 1.08 in 2016 Q2. Its up 0.01, from 1.07 in 2016Q1. The ratio is positive, as 54 funds sold all Eli Lilly and Co shares owned while 365 reduced positions. 88 funds bought stakes while 362 increased positions. They now own 814.98 million shares or 2.31% less from 834.25 million shares in 2016Q1.
Meag Munich Ergo Kapitalanlagegesellschaft Mbh accumulated 0.69% or 96,602 shares. The California-based Advisor Prtn has invested 0.49% in Eli Lilly and Co (NYSE:LLY). Princeton Portfolio Strategies Limited Liability Company, a New Jersey-based fund reported 9,756 shares. Aviva Public Ltd holds 695,062 shares or 0.38% of its portfolio. Hm Payson And Co, a Maine-based fund reported 29,576 shares. Credit Suisse Ag owns 1.90M shares or 0.17% of their US portfolio. Massmutual Fsb Adv has invested 0% of its portfolio in Eli Lilly and Co (NYSE:LLY). Beutel Goodman & Com Ltd last reported 1.07% of its portfolio in the stock. The New York-based Glg has invested 0.35% in Eli Lilly and Co (NYSE:LLY). Mark Sheptoff Financial Planning Limited Liability Com has 4,050 shares for 0.24% of their US portfolio. Burt Wealth Advsrs has 0.39% invested in the company for 4,430 shares. Homrich & Berg last reported 12,353 shares in the company. Bnp Paribas Arbitrage holds 137,272 shares or 0.05% of its portfolio. Confluence Wealth Ltd Liability Company accumulated 0.19% or 5,025 shares. Buckingham Asset Mgmt Ltd Limited Liability Company holds 0.09% or 3,353 shares in its portfolio.

Insider Transactions: Since May 31, 2016, the stock had 1 insider buy, and 9 insider sales for $105.55 million net activity. The insider TAI JACKSON P bought $205,875. On Friday, June 10 the insider Barnes Melissa S sold $73,180. LILLY ENDOWMENT INC sold $19.89M worth of stock or 240,000 shares. Another trade for 2,248 shares valued at $182,927 was made by Crowe Maria A on Tuesday, October 4. $100,873 worth of shares were sold by Zakrowski Donald A on Thursday, July 28.

Eli Lilly and Company is engaged in drug manufacturing business. The company has a market cap of $75.93 billion. The Firm discovers, develops, makes and markets products in two divisions: human pharmaceutical products and animal health products. It has a 29.39 P/E ratio. The Company’s human pharmaceutical business segment sells medicines, which are discovered or developed by its scientists.

LLY Company Profile

Eli Lilly and Company, incorporated on January 17, 1901, is engaged in drug manufacturing business. The Firm discovers, develops, makes and markets products in two divisions: human pharmaceutical products and animal health products. The Company’s products are sold in over 120 countries. The Company’s human pharmaceutical business segment sells medicines, which are discovered or developed by its scientists. The Company’s animal health business segment operates through the Company’s Elanco division, which develops, makes and markets products for both food animals and companion animals. The Firm makes and distributes its products through facilities in the United States, Puerto Rico and over 10 other countries.

More recent Eli Lilly and Co (NYSE:LLY) news were published by: Marketwatch.com which released: “Eli Lilly shares slide premarket after company says Alzheimer’s drug trial failed” on November 23, 2016. Also Forbes.com published the news titled: “January 2017 Options Now Available For Eli Lilly (LLY)” on November 23, 2016. Usatoday.com‘s news article titled: “Feeling Bern’d: Tweets from Sanders’ account send Eli Lilly shares tumbling” with publication date: November 01, 2016 was also an interesting one.

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