Will Eli Lilly Split Its Stock? Here's What History Says Will Happen If It Does.

Currently trading at around $1,160 per share, Eli Lilly (NYSE: LLY) has one of the highest stock prices in the S&P 500. While fractional stock trading means a high absolute share price doesn't hinder performance as much as it used to, there are other reasons a high price might. It may make sense for Eli Lilly to split its stock soon, something it hasn't done in nearly 30 years.

The company has yet to officially announce any sort of stock split plans. However, don't assume that, if it happens, a split will serve as a game changer for what is the most widely followed of the GLP-1 stocks.

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The key takeaway from stock split case studies

Eli Lilly has split four times since 1986, with the latest split implemented in October 1997. Today, the company, surging in recent years thanks to the success of its GLP-1 weight loss drug Zepbound, is in a totally different situation than it was in decades past.

It may be more useful to assess recent stock splits to gauge possible post-split price action in Eli Lilly shares. Three that come to mind are the 2024 10-for-1 stock splits of Broadcom and Nvidia, as well as the April 2026 25-for-1 stock split of Booking Holdings.

Broadcom and Nvidia are up 78.5% and 156.6%, respectively, since their splits. In the five months since implementing its stock split, Booking Holdings' share price has risen 11%. However, given that a stock split, which multiplies the share count and reprices the stock, does nothing to change a company's fundamentals, who's to say these gains are directly the result of the stock splits?

I would argue that these stocks went "splitsville" in the first place due to a surging stock price. Furthermore, as substance, not hype, drives stock prices over time, post-split gains came from strong results, not from a cheaper stock price, making shares more available to a broader range of investors.

What this means for Eli Lilly shares

Apply this thesis to the potential Eli Lilly stock split. It's clear that the underlying "story" behind Lilly's epic price rise will determine whether shares keep climbing in the aftermath of a split. Over the past year, Eli Lilly has surged by over 58%. The stock has pulled back recently, but a bevy of catalysts could put it back on an upward trajectory, even as it trades for nearly 32 times forward earnings, a massive premium to other pharmaceutical stocks.

For one, leveling up on the success of Zepbound, Eli Lilly is busy scaling up production and sales of its pill-based GLP-1 weight loss drug, orforglipron, marketed as Foundayo. It is also working to bring retatrutide, which clinical studies have demonstrated may lead to greater weight loss, to market.

Alongside its GLP-1 drug expansion, Eli Lilly is following industry trends by making a major move into immunology with its recent announcement to acquire Merida Biosciences for $2.9 billion. While a relatively small deal for this $1.1 trillion market-cap company, it could signal a further pivot into immunology through acquisitions.

If these developments enable Eli Lilly to continue meeting or beating growth expectations, split or no split, shares remain well positioned to perform.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booking Holdings, Broadcom, Eli Lilly, and Nvidia. The Motley Fool has a disclosure policy.