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Eli Lilly and Co ($LLY) Stock Buyback History

Eli Lilly and Co ($LLY) Stock Buyback History Graph and Chart

Eli Lilly and Co ($LLY) Stock Buyback Dates

Date Buyback Amount
06/19/2012 $420 million
12/17/2012 $1.50 billion
05/03/2021 $5 billion
Total $6B

FAQs (Frequently Asked Questions)

How Does a Eli Lilly and Co Buyback Work?

When Eli Lilly and Co decides to buyback its own shares, it can decide to either go into the open market and purchase up to an approved limit of shares or it can present its shareholders with a tender offer (generally above current market price) for a direct share repurchase.

Benefits of a Eli Lilly and Co Stock Buyback?

The bottom line of any buyback exercised by the company is that there will be fewer remaining outstanding shares. This translates into various benefits for investors: higher value per share, higher stake in the company and tax benefits due to lower capital gains. A stock buyback does not change the fundamental value of a company. Meaning a Eli Lilly and Co stock buyback will not make the business generate more revenue or be more valuable. It's simply that the value of the company is now shared between fewer shares. To further explore stock buybacks, please refer to Forbes.

Why Would $LLY Buyback Its Own Stock?

If Eli Lilly and Co has decided to buyback its own stock, it's usually due to one of the following reasons: there is no better use for the cash on hand at the time, the price of shares has reached an unfair valuation and the company is betting on itself or it can also be to tame the new outstanding shares generated by stock compensation programs for employees.

Will Eli Lilly and Co Perform Share Buybacks in the Future?

Unfortunately, we do not know. There might be rumors of a Eli Lilly and Co stock buyback, but the truth is that until the board proposes and approves a share repurchase program, it's all just noise.

How Does a Stock Buyback Affect $LLY Fundamentals?

Fundamentally, the company is the same before and after a stock buyback has been completed. However, all per share metrics of the company will go up. EPS (Earnings-per-share) being the most notable and important metric that will go up by, roughly, the proportional amount of buyback being executed.

Eli Lilly and Co Share Buybacks vs Dividends

When you invest in Eli Lilly and Co, you do so because you are expecting to realize a profit from your investment. Depending on the company, this might be through one of two ways: share appreciation or dividends. Both are taxed differently and their tax codes can change throughout the years to favor one or the other.

Stock buybacks help return capital to investors through share appreciation. So, tax treatment would be the first difference. The second difference is that dividend programs tend to be periodic, meaning you can expect constant dividend payments every month/quarter/year. Historically speaking however, buybacks tend to be more of a sporadic way by companies to return capital to their shareholders when the financial conditions are suitable to do so.

If Eli Lilly and Co is performing a share repurchase program right now, it probably means they are in a good spot financially or at least, they are trying to pretend like they are.