Eli Lilly Rose on FDA’s Approval of Basaglar
XLV Shows How Large Caps Can Do Better in Volatile Conditions
Moving averages of XLV holdings
The Health Care Select Sector SPDR ETF (XLV) holds 56 stocks in its portfolio. On December 16, 2015, 73% of the stocks were trading above 20-day moving averages, 79% of the stocks were trading above 50-day moving averages, and 63% of the stocks were trading above 100-day moving averages. The trend has improved over the previous week of December 9, 2015, when 38% of the stocks were trading above their 20-day moving averages, 63% of the stocks were trading above their 50-day moving averages, and 43% of the stocks were trading above their 100-day moving averages.
The above graph reflects the moving average trends of XLV’s holdings. Out of 56 stocks, 41 stocks were trading above 20-day moving averages, 44 stocks were trading above 50-day moving averages, and 35 stocks were trading above 100-day moving averages on December 16, 2015.
Eli Lilly trades above 100-day moving averages
Eli Lilly (LLY) gained 0.9% on December 16, 2015. The stock went up on the news that the FDA (US Food and Drug Administration) approved Basaglar. As per the press release, LLY announced that “the U.S. Food and Drug Administration (FDA) granted approval for Basaglar (insulin glargine injection) 100 units/mL. Basaglar is a long-acting insulin with an identical amino acid sequence to Lantus, another U-100 insulin glargine. It is delivered via the prefilled Basaglar KwikPen. Basaglar is indicated to control high blood sugar in adults and children with type 1 diabetes and adults with type 2 diabetes.”
LLY closed at $86.29 and was trading above its 20-day, 50-day, and 100-day moving averages. Year-to-date, LLY has given a return of 25.1%. LLY has a book value of $13.74 per share. With its current price, the stock is trading at a price-to-book value of 6.28x. LLY has a weight of ~3% in XLV’s portfolio.
The other stocks in XLV that are trading above their 100-day moving averages are Medtronic (MDT), Cigna (CI), and Quest Diagnostics (DGX).
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