Eli Lilly & Co (NYSE:LLY) executive Donald A. Zakrowski, who serves as the Senior Vice President of Finance and Chief Accounting Officer, has sold a portion of his holdings in the company. The transaction, which took place on June 3, 2024, involved the sale of 750 shares at a price of $819.47 each, resulting in a total value of $614,602.
The sale was conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Zakrowski had adopted on November 16, 2023. Such plans allow company insiders to sell a predetermined number of shares at a preset time to avoid accusations of insider trading.
Following the sale, Zakrowski's direct holdings in Eli Lilly have decreased to 7,130 shares. Additionally, he maintains an indirect position of 1,710 shares through his 401(k) plan.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's future performance. However, it is important to note that these transactions may be motivated by a variety of personal financial considerations and may not necessarily reflect the executive's outlook on the company's valuation or business prospects.
Eli Lilly, headquartered in Indianapolis, Indiana, is a global pharmaceutical company known for its development and production of a wide range of medications. The company remains a significant player in the healthcare sector, with a focus on delivering innovative treatments to patients worldwide.
InvestingPro Insights
As Eli Lilly & Co (NYSE:LLY) makes headlines with insider stock transactions, the market is closely watching the pharmaceutical giant's financial health and growth prospects. With a robust market capitalization of $748.56 billion, Eli Lilly is a heavyweight in the industry. The company's financials reflect significant growth, with a revenue increase of nearly 30% in the last twelve months leading up to Q1 2024. This growth momentum is further underscored by a gross profit margin of 80.16%, indicating efficient operations and strong pricing power.
InvestingPro Tips for Eli Lilly highlight the company's consistency in rewarding shareholders, as evidenced by its nine-year streak of raising dividends and a 15.04% dividend growth in the last twelve months. Additionally, with 10 analysts having revised their earnings forecasts upwards for the upcoming period, the investment community is signaling optimism about Eli Lilly's financial outlook. It's worth noting that Eli Lilly is trading at a high earnings multiple, with a P/E ratio of 122.02, which may reflect high expectations for future earnings growth.
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