Eli Lilly Stock Surges on Record $6.75B Bond Sale Daily Trading Volume Ranks 17th in Market Activity

Eli Lilly (LLY) saw a 0.74% rise in its stock price on August 19, 2025, with a trading volume of $4.19 billion, ranking 17th in market activity for the day. The company finalized its largest-ever corporate bond issuance, selling $6.75 billion in investment-grade debt across seven tranches, including a rare 40-year bond. This move underscores confidence in its financial stability and long-term growth prospects amid a market favoring shorter-term debt issuance.

The bond offering features a 40-year tranche priced at a 0.73 percentage point yield premium over U.S. Treasuries, significantly lower than initial estimates. Proceeds will be allocated to general corporate purposes, including debt reduction, as the company’s existing liabilities stand at $35 billion. The transaction aligns with a broader trend of corporations securing funding before a seasonal slowdown in September, with spreads reaching multi-decade lows. Analysts note the issuance reflects robust investor demand, with order books exceeding five times the available supply.

LLY’s strategic flexibility is bolstered by its strong credit profile, supported by Aa3 and A+ ratings from Moody’s and S&P. The company’s projected $58-61 billion in 2025 revenue, driven by blockbuster drugs like Mounjaro and Zepbound, further solidifies its capacity to manage debt while advancing R&D and operational expansion. A conservative debt-to-EBITDA ratio and high interest coverage ratios highlight its financial resilience.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 1.98%, with a total return of 7.61% over the past year. While the strategy showed stability, the returns were modest, and the Sharpe ratio was low at 0.71, indicating modest risk-adjusted returns.