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:
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 ABT 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: 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(Y537)
= Exp(a + b × X537 + 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(Y537)
= Exp(a + b × X537 – 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(Y1,258)
= Exp(a + b × X1,258 + 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(Y1,258)
= Exp(a + b × X1,258 – 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(Y1,227)
= Exp(a + b × X1,227 + 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(Y1,227)
= Exp(a + b × X1,227 – 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(Y1,258)
= Exp(a + b × X1,258 + 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(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(-1.0285 + 0.0031 × 1,824 – 2 × 0.0143)
= Exp(4.6333)
= $102.85