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- 1 EXPN stock price: The company’s shares have experienced a rise thanks to the positive annual report.
- 2 The revenue of the firm has increased crossing the industry average CAGR.
- 3 Its current share price is moving toward the upper end but there is a liquidity crunch on the lower side
The Tech giant (LON: EXPN) has given 57% returns over the last 5 years. This price rise has contributed to its market capitalization, which has risen to £25.6 Billion. The price-to-earnings ratio and market cap have also increased to 39.9 per the current reports.
The Annual Report and Bullish Rally
The price of XPN stocks began to rise following the release of the annual report 2023, which was made public this May. The figures give us the answer: Where the revenue rose by 19.4%, the gross profit rose by more than 24%. Not only did the company pass the industry growth, but it also retained it. The net profit for the year was $639M, with a net margin of 13.7%.
The Company is low on cash as compared with its short-term debt. The quick ratio is 0.78, while the asset turnover ratio is 0.64. The debt-to-equity ratio has decreased over the years, indicating the company is paying off its long-term loans. Its current Debt-equity ratio is 1.04.
Technical Analysis and Prediction of the EXPN Stock Price
The EXPN share price was in an uptrend until it reached a high of $3104 in mid-July. This uptrend was broken as a result of some correction in stock. The EXPN share price again tried to take the support at $2857. However, the bears were in control, and the bullish investors were fearful. It resulted in the share price breaking primary support levels since July.
At press time, the EXPN share price is downtrend after breaking the central demand zone of $2857, now the immediate resistance level. The stock is currently trading at $2811 after the bulls have reclaimed the support level of $2662.
The 50-day exponential moving average price is $2772, while the 150-day average is $2813. The Relative strength index (RSI) has crossed its neutral zone of 50 and is currently at $60.
The prediction is bearish
The EXPN share price prediction will be bearish. There needs to be more liquidity below the 1st support level, as the share price has already made a high recently. Therefore, there is a high chance that it will first fill the liquidity before rising above the immediate resistance level.
Conclusion
The Tech giant (LON: EXPN) has published a growth-filled annual report, which has acted as a surfing wave for bullish investors as the EXPN stock price has been rising since then. However, currently, there is a liquidity crunch below the immediate support level. It is predicted to be filled before the bulls sustain above the current supply zone.
Technical Levels
Support: £2662, and £2564
Resistance: £2857, and £2999
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
