# Abbott Laboratories (ABT)

Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States.

## 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 8.09% per annum.
- ABT price at the close of December 8, 2023 was $104.51 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 212.27% per annum.
- ABT price at the close of December 8, 2023 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

### Linear Regression Model

Model equation:

Y_{i} = α + β × X_{i} + ε_{i}

Top border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} + 2 × s)

Bottom border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} – 2 × s)

where:

i - observation number

Y_{i} - natural logarithm of ABT price

X_{i} - time index, 1 day interval

σ - standard deviation of ε_{i}

a - estimator of α

b - estimator of β

s - estimator of σ

Exp() - calculates the exponent of e

### Primary Trend

Start date: January 28, 2021

End date: December 8, 2023

a = 5.0212

b = -0.0002

s = 0.0605

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × -0.0002) – 1

= -8.09%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0605) – 1

= 27.39%

#### January 28, 2021 calculations

Top border of price channel:

Exp(Y_{537})

= Exp(a + b × X_{537} + 2 × s)

= Exp(a + b × 780 + 2 × s)

= Exp(5.0212 + -0.0002 × 780 + 2 × 0.0605)

= Exp(4.9619)

= $142.87

Bottom border of price channel:

Exp(Y_{537})

= Exp(a + b × X_{537} – 2 × s)

= Exp(a + b × 780 – 2 × s)

= Exp(5.0212 + -0.0002 × 780 – 2 × 0.0605)

= Exp(4.7198)

= $112.15

#### December 8, 2023 calculations

Top border of price channel:

Exp(Y_{1,258})

= Exp(a + b × X_{1,258} + 2 × s)

= Exp(a + b × 1,824 + 2 × s)

= Exp(5.0212 + -0.0002 × 1,824 + 2 × 0.0605)

= Exp(4.7205)

= $112.23

Bottom border of price channel:

Exp(Y_{1,258})

= Exp(a + b × X_{1,258} – 2 × s)

= Exp(a + b × 1,824 – 2 × s)

= Exp(5.0212 + -0.0002 × 1,824 – 2 × 0.0605)

= Exp(4.4784)

= $88.10

### Secondary Trend

Start date: October 25, 2023

End date: December 8, 2023

a = -1.0285

b = 0.0031

s = 0.0143

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × 0.0031) – 1

= 212.27%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0143) – 1

= 5.89%

#### October 25, 2023 calculations

Top border of price channel:

Exp(Y_{1,227})

= Exp(a + b × X_{1,227} + 2 × s)

= Exp(a + b × 1,780 + 2 × s)

= Exp(-1.0285 + 0.0031 × 1,780 + 2 × 0.0143)

= Exp(4.5532)

= $94.94

Bottom border of price channel:

Exp(Y_{1,227})

= Exp(a + b × X_{1,227} – 2 × s)

= Exp(a + b × 1,780 – 2 × s)

= Exp(-1.0285 + 0.0031 × 1,780 – 2 × 0.0143)

= Exp(4.4960)

= $89.66

#### December 8, 2023 calculations

Top border of price channel:

Exp(Y_{1,258})

= Exp(a + b × X_{1,258} + 2 × s)

= Exp(a + b × 1,824 + 2 × s)

= Exp(-1.0285 + 0.0031 × 1,824 + 2 × 0.0143)

= Exp(4.6905)

= $108.91

Bottom border of price channel:

Exp(Y_{1,258})

= Exp(a + b × X_{1,258} – 2 × s)

= Exp(a + b × 1,824 – 2 × s)

= Exp(-1.0285 + 0.0031 × 1,824 – 2 × 0.0143)

= Exp(4.6333)

= $102.85