This trade activity should not be overlooked: Elanco Animal Health Incorporated (ELAN)

Elanco Animal Health Incorporated (NYSE: ELAN) stock jumped 0.20% on Friday to $19.57 against a previous-day closing price of $19.53. With 8.23 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.59 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $19.95 whereas the lowest price it dropped to was $19.52. The 52-week range on ELAN shows that it touched its highest point at $35.00 and its lowest point at $18.64 during that stretch. It currently has a 1-year price target of $25.62. Beta for the stock currently stands at 0.80.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ELAN was up-trending over the past week, with a rise of 2.89%, but this was down by -0.66% over a month. Three-month performance dropped to -6.00% while six-month performance fell -23.94%. The stock lost -32.98% in the past year, while it has lost -31.04% so far this year. A look at the trailing 12-month EPS for ELAN yields -0.75 with Next year EPS estimates of 1.41. For the next quarter, that number is 0.25. This implies an EPS growth rate of 23.70% for this year and 23.08% for next year. EPS is expected to grow by 13.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -48.40%.

Float and Shares Shorts:

At present, 488.00 million ELAN shares are outstanding with a float of 454.52 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.74 million, which was 3.11% higher than short shares on Jun 14, 2022. In addition to Mr. Jeffrey N. Simmons as the firm’s Pres, CEO & Director, Mr. Todd S. Young serves as its Exec. VP of Corp. Governance and Strategy & CFO.

Institutional Ownership:

Through their ownership of 107.00% of ELAN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.06% of ELAN, in contrast to 55.71% held by mutual funds. Shares owned by individuals account for 48.68%. As the largest shareholder in ELAN with 10.38% of the stake, Dodge & Cox holds 49,206,190 shares worth 49,206,190. A second-largest stockholder of ELAN, The Vanguard Group, Inc., holds 40,567,808 shares, controlling over 8.56% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in ELAN, holding 34,513,106 shares or 7.28% stake. With a 7.38% stake in ELAN, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 34,998,000 shares are owned by the mutual fund manager. The Vanguard PRIMECAP Fund, which owns about 2.86% of ELAN stock, is the second-largest Mutual Fund holder. It holds 13,563,919 shares valued at 266.26 million. Vanguard Total Stock Market Index holds 2.81% of the stake in ELAN, owning 13,304,638 shares worth 261.17 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ELAN since 11 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ELAN analysts setting a high price target of $37.00 and a low target of $19.00, the average target price over the next 12 months is $26.13. Based on these targets, ELAN could surge 89.06% to reach the target high and fall by -2.91% to reach the target low. Reaching the average price target will result in a growth of 33.52% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ELAN will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $1.18 being high and $1.06 being low. For ELAN, this leads to a yearly average estimate of $1.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Elanco Animal Health Incorporated surprised analysts by $0.11 when it reported $0.36 EPS against a consensus estimate of $0.25. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.29 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.20.

Summary of Insider Activity:

Insiders traded ELAN stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 10,000 shares were bought while 4,040 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 26 over the past year. The total number of shares bought during that period was 762,618 while 219,009 shares were sold.

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