7. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders as of Q4: 115
Two Sigma Investments’ Equity Stake: $619.45 Million
Eli Lilly and Company (NYSE:LLY), established in 1876, is a multinational pharmaceutical firm headquartered in Indianapolis, Indiana, with operations spanning 18 countries. Its products are available in approximately 125 countries, highlighting its extensive global presence. Beyond its pharmaceutical innovations, the company prioritizes inclusive clinical trials and is dedicated to making its medications both accessible and affordable to diverse populations.
Two Sigma Investments recently boosted its holdings in Eli Lilly and Company (NYSE:LLY) by 50%, increasing its stake from 536,000 shares in Q3 2024 to 802,400 shares in Q4 2024. This investment, valued at over $619 million, positions the company as the hedge fund’s seventh most valuable holding in its 13F filings for the quarter ending December 2024.
On February 6, 2025, Eli Lilly and Company (NYSE:LLY) announced its fourth-quarter 2024 financial results, showcasing impressive revenue growth and a promising outlook. CEO David A. Ricks highlighted the company’s progress in addressing chronic diseases linked to obesity, expanding manufacturing operations, and introducing key new therapies. Quarterly revenue soared by 45% year-over-year to $13.53 billion, driven largely by the strong performance of its products Mounjaro and Zepbound. Earnings per share (EPS) more than doubled, surging 114% to $5.32. Looking ahead, Eli Lilly forecasts 2025 revenue in the range of $58.0 billion to $61.0 billion, with an EPS estimate between $22.05 and $23.55, reinforcing confidence in its future financial trajectory.
According to Insider Monkey’s database, 115 hedge funds held positions in Eli Lilly and Company (NYSE:LLY) at the close of Q4 2024, with a combined value nearing $16.65 billion—an increase from 106 funds in the prior quarter. This growing hedge fund interest reflects strong confidence in the company’s long-term growth prospects and its robust pharmaceutical pipeline.
With a history of innovation, strong revenue performance, and increasing investor confidence, Eli Lilly and Company (NYSE:LLY) remains a top stock to buy according to Two Sigma Investments. Its dominance in high-demand therapeutic areas and ongoing product launches position the company for sustained success in the pharmaceutical sector.
RiverPark Large Growth Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q4 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY): LLY was a top detractor in the fourth quarter following a rare revenue miss in the company’s 3Q update. The greater than $1 billion miss in the tirzepatide complex (Mounjaro/Zepbound) was caused by a combination of factors, including wholesaler stocking patterns (2Q inventory build, 3Q sell through), refrigerated supply chain constraints, timing of the company’s direct-to-consumer efforts, and the pace of international market launches. We believe the diabetes/obesity/weight-loss market is enormous and that current GLP-1 drugs, though no longer supply constrained, are greatly in demand. We are confident that LLY’s recent sales shortfall was supply chain-related and that the company’s tirzepatide franchise growth will soon reaccelerate.
LLY discovers, develops, manufactures, and markets pharmaceutical products. The company manufactures and distributes products through facilities in the United States and seven other countries and sells into 110 countries. The company has a broad and deep portfolio of products including a focus on diabetes, oncology, immunology and neuroscience. More recently, LLY’s GLP-1 diabetes drug Mounjaro and obesity drug Zepbound, have delivered strong revenue growth, and investors are optimistic that the company’s recently approved Alzheimer drug, Kisunla, will add to that growth.
LLY has a stable portfolio of franchise products, which enables it to invest heavily in its product pipeline. We believe that this combination of franchise and growth products will drive high teens revenue growth and a four-fold increase in free cash flow in the next five years.”
