Eli Lilly & Co (NYSE: LLY) is an American firm that facilitates the manufacturing, development, and sale of pharmaceutical products. Its product range includes therapies for diabetes, oncology, immunology, neuroscience, and other related fields.
Why did the stock price surge up?
The LLY stock price surged right after the publishing of the 2nd quarter report. The revenue reported was $8.3B, which has grown more than 28% year on year along with the operating income. It grew by more than 34%. The company sustained $1.7B in net income. The net income margin of 21% has helped in increasing the return on equity from 55% to the current value of 67%. The earnings per share also increased from $1.49 to 1.96% as of the last quarter.
The latest acquisition deal
Eli Lilly and Company and POINT Biopharma Global, Inc. (NASDAQ: PNT) have announced a definitive agreement for Lilly to acquire POINT Biopharma Global for $1.4 billion. The companies made the news public this Tuesday, believing this deal will help in gaining access to advanced experimental therapies that will enable precise targeting of cancer diseases.
Technical analysis and prediction of LLY stock price
At the time of writing, the LLY stock price is trading at $531 after getting a price rejection from its all-time high of $601. The stock price is currently near its support level of $517 and the bulls are looking forward to reclaiming it.
The bullish momentum can take place if the bulls reclaim the support level. However, the gap-up opening, which was made on the 7th of August this year, has yet to be filled. It can give strength to the bears to further break the support level. The bears are getting stronger, as the stock could not reach its all-time high again. The Bulls are losing momentum.
Therefore, the price prediction for LLY stock will be bearish if the current support is broken and the target will be $453. The bears could take control of the stock and the price could face a significant decline. However, if the support level holds, the bulls can regain their momentum and push the price higher.
Eli Lilly & Co (NYSE: LLY) price has risen following the release of its quarterly report in which the company has performed well. Lilly and Company and POINT Biopharma Global, Inc. (NASDAQ: PNT) have announced an acquisition deal. The LLY stock price is currently trading near its resistance, while the price prediction is bearish because of the lack of liquidity on the downside
Support: $517, and $433
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