Investors with a lot of money to spend have taken a bullish stance on Eli Lilly (NYSE:LLY).And retail traders should know.We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with LLY, it often means somebody knows something is about to happen.So how do we know what these investors just did? Today, Benzinga's options scanner spotted 56 ...

Core Insights - Eli Lilly and Company (NYSE: LLY) is recognized as one of the 11 Best Value Dividend Stocks to buy currently [1] - The company has a long-standing history in developing drugs for various conditions, including diabetes, cancer, and immunology [2] Financial Performance - In the second quarter, Eli Lilly generated revenue of $15.6 billion, with three key products—Mounjaro, Zepbound, and Verzenio—accounting for 65% of this revenue [3] - Revenue growth for these products ranged from 12% to 172%, highlighting their significant contribution to sales momentum [3] Research and Development - Eli Lilly's research and development expenses increased by 23% year-over-year, reaching $3.3 billion in the second quarter, which constitutes over 21% of the company's total revenue [4] Shareholder Returns - The company has consistently returned value to shareholders, having raised its dividends for 11 consecutive years, with a current quarterly dividend of $1.50 per share [5] - As of September 26, the stock has a dividend yield of 0.83% [5]

Group 1 - Investors are showing a bullish stance on Eli Lilly (NYSE: LLY), with significant options trades indicating potential insider knowledge of upcoming events [1][2] - The overall sentiment among large investors is split, with 34% bullish and 34% bearish, highlighting mixed expectations [2] - Notable options activity includes 15 call options totaling $1,103,597 and 8 put options totaling $646,055, suggesting a cautious approach among traders [2] Group 2 - Whales have targeted a price range for Eli Lilly between $640.0 and $850.0 over the last three months, indicating a focused investment strategy [3] - The mean open interest for Eli Lilly options trades is 754.85, with a total volume of 802.00, reflecting active trading interest [4] Group 3 - Eli Lilly's key products span various therapeutic areas, including neuroscience, cardiometabolic, cancer, and immunology, with notable drugs like Verzenio and Mounjaro [11] - Recent analyst opinions show a range of price targets, with an average target of $940.0, while one analyst lowered their rating to Hold with a target of $830, and another maintained an Overweight rating with a target of $1050 [12][13] Group 4 - The current stock price of Eli Lilly is $718.34, down 0.86%, with upcoming earnings expected in 30 days [15]

Core Insights - The article discusses the performance of value stocks, particularly those that pay dividends, highlighting their historical outperformance compared to growth stocks [2][4]. Value Stocks Performance - Value stocks, defined by low price-to-book ratios, have outperformed growth stocks by an average of 2.5% annually since 1926 [2]. - The trend of value stocks outperforming growth stocks was disrupted during the global financial crisis from 2007 to 2020, but value stocks regained some traction in 2020 before losing ground again in late 2022 [2]. Investment Strategy - Joseph H. Davis from Vanguard emphasizes the importance of broad diversification and focusing on undervalued stocks to mitigate risks associated with market transformations, such as those driven by artificial intelligence [3]. Methodology for Stock Selection - The article utilizes Insider Monkey's Q2 2025 database to identify dividend stocks with forward P/E ratios below 25 as of September 26, ranking them based on hedge fund interest [6]. Company Highlights - **Eli Lilly and Company (NYSE: LLY)** - Forward P/E as of September 26: 23.70 - Major revenue drivers include Mounjaro, Zepbound, and Verzenio, which contributed to 65% of Q2 revenue of $15.6 billion, with growth rates between 12% and 172% [9]. - R&D expenses increased by 23% year-over-year to $3.3 billion, representing over 21% of revenue [10]. - The company has raised dividends for 11 consecutive years, currently offering $1.50 per share with a yield of 0.83% [11]. - **Abbott Laboratories (NYSE: ABT)** - Forward P/E as of September 26: 23.42 - Declared a quarterly dividend of $0.59 per share, maintaining a 53-year streak of dividend increases, with a yield of 1.77% [13]. - The FreeStyle Libre glucose monitoring system has become a significant growth driver despite a decline in COVID-19 test sales [14]. - **Illinois Tool Works Inc. (NYSE: ITW)** - Forward P/E as of September 26: 22.47 - Focuses on efficiency and customer-driven innovation, with a strategy that emphasizes operational improvements and disciplined portfolio management [15][16]. - Announced a 7.3% increase in its quarterly dividend to $1.61 per share, extending its dividend growth streak to 53 years, with a yield of 2.47% [17].

Core Viewpoint - Despite the strong performance of the S&P 500 index, Coca-Cola and Eli Lilly have underperformed, presenting attractive buying opportunities for long-term dividend-seeking investors [1][2]. Group 1: Coca-Cola - Coca-Cola operates in over 200 countries and has seen a 5% revenue growth in the second quarter, excluding foreign currency fluctuations and acquisitions/divestitures [4]. - The revenue increase was driven by higher prices and a changing product mix, contributing 6 percentage points, while lower volume subtracted 1 percentage point [5]. - Coca-Cola has a 3.1% dividend yield, significantly higher than the S&P 500's 1.2%, and a payout ratio of 71%, indicating strong dividend sustainability [7][6]. Group 2: Eli Lilly - Eli Lilly generates significant revenue from three key drugs, which account for 65% of its $15.6 billion second-quarter revenue, with growth rates ranging from 12% to 172% [8]. - The company reported a 38% revenue growth in the second quarter and a 61% increase in adjusted earnings per share to $6.31, with management raising its 2025 revenue guidance to over 35% growth [9]. - Eli Lilly has a 0.8% dividend yield and a 37% payout ratio, with consistent annual dividend increases since 2015, indicating strong earnings coverage for dividends [10].

Core Viewpoint - Eli Lilly is experiencing short-term stock price weakness, but the company has strong growth potential due to its effective weight loss drug and treatments for diabetes and Alzheimer's [1][10]. Revenue Growth - Eli Lilly's revenue growth is expected to continue, driven by the demand for its weight loss drug Zepbound and diabetes treatment Mounjaro, which saw a 68% year-over-year increase in Q2 revenue to approximately $5.2 billion [3][9]. - Zepbound is the fastest-growing product, with U.S. sales reaching $3.38 billion in Q2 2025, marking a 172% increase year over year [5]. Market Potential - The obesity rate in adults is significant, with the CDC reporting a rate of 40.3% between August 2021 and August 2023, indicating a large market for Zepbound [6]. - The third key product, Verzenio, for breast cancer treatment, saw a 12% increase in worldwide sales to $1.49 billion, with a 19% growth in revenue outside the U.S. [6]. Financial Performance - Eli Lilly's financials show strong results, with revenue increasing by 19.5% in fiscal 2023 and 32% in fiscal 2024, and net income nearly doubling to $10.6 billion [9]. - In Q2 2025, revenue rose 38% year over year to $15.56 billion, with net income increasing 91% to $5.66 billion and earnings per share growing 92% to $6.29 [9]. Future Prospects - The company has a promising pipeline, including a new obesity drug Orforglipron and ongoing developments for Mounjaro related to type 2 diabetes and heart disease [11]. - Guidance for 2025 earnings per share is projected between $20.85 and $22.10, suggesting a forward valuation of 36 times earnings, which is considered reasonable given the growth rates [12].

Group 1: Eli Lilly - Eli Lilly's stock price has fallen significantly, but analysts expect a rebound with a consensus price target of $950.17, indicating a potential increase of over 29% from a recent price of $735 per share [4] - The decline in stock price was attributed to disappointing results from a clinical trial for orforglipron, which showed a 12.4% average weight reduction after 72 weeks, compared to a 20.9% reduction with Zepbound [5] - Total sales of tirzepatide, an active ingredient in Zepbound and Mounjaro, surged by 121% year over year, reaching $14.7 billion in the first half of 2025, indicating strong growth potential [6] - Eli Lilly's dividend yield is currently low at 0.8%, but the company has more than doubled its dividend payout over the past five years, suggesting future income potential [9] Group 2: ConocoPhillips - ConocoPhillips shares are down about 30% from their all-time high, but analysts have a consensus target of $120.95, implying a potential gain of about 28% from a recent price of $95 per share [10] - The company has maintained a quarterly dividend payout of $0.78 per share, resulting in a dividend yield of 3.3%, while also prioritizing shareholder returns through share buybacks [10][11] - ConocoPhillips is expected to see annual free cash flow rise by more than $7 billion over the next four years, supported by asset sales and tax benefits [12]

Core Insights - Pfizer Inc. is experiencing challenges in share price momentum post-COVID-19, but recent strong quarterly results and a favorable technical chart indicate a potential turnaround, making it a consideration for investment due to its attractive dividend yield of approximately 6.9% [1][7] Dividend and Financial Performance - Pfizer's current payout ratio stands at 51% of earnings, reflecting a commitment to returning profits to shareholders while also reinvesting in growth [2][3] - The company has increased its dividend five times over the past five years, with an annualized dividend growth of 2.56% [3][2] - In the first half of the year, Pfizer reported cash inflows of $571 million against dividend payments of $4.9 billion, but the CFO has assured improvements in cash flows for the second half [3][4] Revenue and Growth Prospects - Pfizer's Q2 revenues reached $14.7 billion, marking a 10% year-over-year increase, with EPS rising 30% to $0.78 [7][9] - The company is launching new drugs, such as Elrexfio and Sigvotatug vedotin, to offset revenue losses from the loss of exclusivity of some best-selling drugs [4][5] - The acquisition of Seagen is expected to enhance cash flow, providing financial flexibility for sustaining and increasing dividends [5][8] Market Position and Competitive Landscape - Pfizer's sales for its COVID-19 products, Paxlovid and Comirnaty, have shown year-over-year growth, alongside strong performance from cancer drugs like Xtandi and Padcev [9] - Despite positive indicators, challenges remain, including competition in the immuno-oncology space and patent expirations for key products like Eliquis and Xtandi [12] Technical Indicators - A golden cross pattern has emerged, indicating a potential uptrend in Pfizer's share price, as the 50-day moving average has crossed above the 200-day moving average [10]

Core Viewpoint - Eli Lilly and Company is a leading global pharmaceutical company with a market capitalization exceeding $600 billion, focusing on innovative therapies for chronic and complex diseases, particularly in diabetes, obesity, oncology, neuroscience, autoimmune diseases, and pain management [1][2]. Group 1: Business Overview - The company operates in over 90 countries with a workforce of 47,000 employees, emphasizing high-complexity human medications [1]. - Eli Lilly's primary drugs include Basaglar, Jardiance, Mounjaro, Trulicity in diabetes; Zepbound in obesity; and Verzenio, Alimta, Cyramza, among others in oncology [2]. - The company plans to invest $14.27 billion in R&D in 2024, supported by strategic partnerships with global brands [2][3]. Group 2: Strategic Focus - The company's strategy focuses on rapid growth, particularly in the obesity and diabetes sectors, with significant investments in R&D and strategic acquisitions [3]. - Eli Lilly aims to diversify its revenue streams and mitigate patent expiration risks through strong product lifecycle management [3]. Group 3: Financial Performance - Eli Lilly reported a surprising Q2 performance with a 61% increase in earnings per share, reaching $6.31, exceeding expectations [8]. - The company gained a 3.8% market share in the U.S. obesity drug market and raised its 2025 revenue forecast by $1.5 billion [8]. Group 4: Product Development - The oral GLP-1 drug Orforglipron showed a 12.4% weight loss after 72 weeks, which was below expectations compared to competitors [9]. - Despite lower-than-expected efficacy, Orforglipron targets a different audience preferring oral medication, with plans for regulatory approval by the end of 2025 [11]. Group 5: Market Position and Valuation - Analysts project a fair value of $872.49 for Eli Lilly's stock, indicating a 19.1% upside potential despite recent stock price declines [10]. - The company maintains a strong competitive position in the pharmaceutical industry, bolstered by significant R&D investments and a diverse product line [15].

Company Overview - Eli Lilly and Company is a leading global pharmaceutical firm with a market capitalization of $605.19 billion as of August 12, 2025, focusing on research-driven innovation and strategic alliances to maintain a competitive position [5] - The company offers a broad portfolio of pharmaceuticals for various therapeutic areas, including diabetes, oncology, immunology, and neuroscience, with key products such as Humalog, Trulicity, Verzenio, and Taltz [8] - Eli Lilly generates revenue primarily through the development, manufacturing, and global sale of branded prescription drugs, targeting patients with chronic and acute medical conditions across more than 120 countries [8] Financial Performance - As of the quarter ended June 30, 2025, Eli Lilly's revenue (TTM) was $53.26 billion, with a net income (TTM) of $13.80 billion [3] - The company's dividend yield stands at 0.79%, with a forward P/E ratio of 32.15 and an EV/EBITDA of 35.32 [2][3] - Eli Lilly's one-year total return was -23.1%, underperforming the S&P 500 by 38.3 percentage points [2] Market Position and Competition - Eli Lilly's weight loss drug, Zepbound, claims to provide 47% greater relative weight loss compared to Novo Nordisk's Wegovy, positioning it favorably in the competitive weight-loss drug market [9] - The race to launch oral versions of weight loss drugs is intensifying, with Novo Nordisk's oral Wegovy under FDA review and Eli Lilly planning to submit its oral weight loss drug, orforglipron, for approval by the end of 2025 [10][11] - In clinical trials, Novo Nordisk's oral Wegovy achieved a mean weight loss of 15.1%, while orforglipron reached 12.4% at its highest dosage, indicating potential challenges for Eli Lilly in maintaining its competitive edge [11]