The Case for and Against Eli Lilly and Company (LLY)

Eli Lilly and Company (LLY) is an interesting player in the Healthcare space, with a focus on Drug Manufacturers – Major. The stock has been active on the tape, currently trading at $80.12, up from yesterday’s close by 0.50%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Eli Lilly and Company (LLY) currently trades with a market capitalization of $87.08 Billion. That value represents a market adjusting for revenues that have been growing by 6.95 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $4.54 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.14 on a per share basis this quarter. Perhaps, that suggests something about why 0.36% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Eli Lilly and Company recorded a 52-week high of $89.09. It is now trading 8.97% off that level. The stock is trading $77.85 its 50-day moving average by -2.27%. The stock carved out a 52-week low down at $73.69.

In recent action, Eli Lilly and Company (LLY) has made a move of -0.46% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.41, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.97% with $1.09 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of LLY.

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