Stock Price Trends

Eli Lilly and Company (LLY) 

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 14.15% per annum.
  • LLY price at the close of August 15, 2025 was $701.23 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 28.95% per annum.
  • LLY price at the close of August 15, 2025 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of LLY price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: June 3, 2024
End date: August 15, 2025

a = 7.3806

b = -0.0004

s = 0.0656

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -14.15%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0656) – 1
= 30.02%

June 3, 2024 calculations

Top border of price channel:

Exp(Y954)
= Exp(a + b × X954 + 2 × s)
= Exp(a + b × 1,386 + 2 × s)
= Exp(7.3806 + -0.0004 × 1,386 + 2 × 0.0656)
= Exp(6.9324)
= $1,024.96

Bottom border of price channel:

Exp(Y954)
= Exp(a + b × X954 – 2 × s)
= Exp(a + b × 1,386 – 2 × s)
= Exp(7.3806 + -0.0004 × 1,386 – 2 × 0.0656)
= Exp(6.6699)
= $788.33

August 15, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(7.3806 + -0.0004 × 1,824 + 2 × 0.0656)
= Exp(6.7493)
= $853.45

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(7.3806 + -0.0004 × 1,824 – 2 × 0.0656)
= Exp(6.4868)
= $656.42

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 14.15% per annum.
  • LLY price at the close of August 15, 2025 was $701.23 and was inside the primary price channel.

Secondary Trend

Start date: February 6, 2025
End date: August 15, 2025

a = 8.2912

b = -0.0009

s = 0.0601

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -28.95%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0601) – 1
= 27.16%

February 6, 2025 calculations

Top border of price channel:

Exp(Y1,124)
= Exp(a + b × X1,124 + 2 × s)
= Exp(a + b × 1,634 + 2 × s)
= Exp(8.2912 + -0.0009 × 1,634 + 2 × 0.0601)
= Exp(6.8811)
= $973.65

Bottom border of price channel:

Exp(Y1,124)
= Exp(a + b × X1,124 – 2 × s)
= Exp(a + b × 1,634 – 2 × s)
= Exp(8.2912 + -0.0009 × 1,634 – 2 × 0.0601)
= Exp(6.6408)
= $765.68

August 15, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(8.2912 + -0.0009 × 1,824 + 2 × 0.0601)
= Exp(6.7031)
= $814.94

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(8.2912 + -0.0009 × 1,824 – 2 × 0.0601)
= Exp(6.4628)
= $640.87

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 28.95% per annum.
  • LLY price at the close of August 15, 2025 was inside the secondary price channel.