Morgan Stanley has recently reduced Elanco Animal Health Inc (ELAN) stock rating, as announced on September 19, 2024, according to Finviz. Earlier, on January 5, 2024, Stifel had raised the stock from a Hold to Buy, setting a price target of $20 for ELAN stock. Jefferies also initiated Buy rating with a price target of $17. Additionally, Morgan Stanley raised rating on December 15, 2023, with a target price of $16. Exane BNP Paribas analysts, in their report published on December 7, 2023, also initiated Outperform rating and set a price target of $18 for Elanco Animal Health Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Elanco Animal Health Inc (ELAN) Stock Trading Recap
On Wednesday, Elanco Animal Health Inc (ELAN) stock saw a decline, ending the day at $12.51 which represents a decrease of $-0.15 or -1.18% from the prior close of $12.66. The stock opened at $12.66 and touched a low of $12.33 during the day, reaching a high of $12.69. The volume of shares traded was 3.70 million falling short of the average volume of 4.78 million.
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ELAN Stock Performance and Moving Averages
In recent trading, Elanco Animal Health Inc (ELAN) stock price has shown some volatility, fluctuating -5.66% over the last five trades and -9.87% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -6.01%, and it has plunged by -2.42% in the previous three months. Currently, ELAN is trading at -10.16%, -12.97%, and -16.96% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ELAN, a Healthcare sector stock, is trading -33.46% below its 52-week high but remains 46.83% above its 52-week low. The Average True Range (ATR) (14 days) of 0.52 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Elanco Animal Health Inc’s Profitability and Valuation Ratios
Elanco Animal Health Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 6.68% and a profit margin of -27.94%, with a gross margin of -6.01%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Elanco Animal Health Inc’s market capitalization stands at $6.18 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 13. Additionally, the Price-to-Sales Ratio is 1.38, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.04, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.24% of Elanco Animal Health Inc (ELAN)’s shares, while financial institutions hold 97.60%.
