Stock Price Trends

Ametek Inc (AME)

AMETEK, Inc. is an American global manufacturer of electronic instruments and electromechanical devices with a headquarters in the United States and over 220 manufacturing sites worldwide.

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 23.27% per annum.
  • AME price at the close of July 25, 2024 was $168.52 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 2.73% per annum.
  • AME price at the close of July 25, 2024 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 AME 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: February 22, 2024
End date: July 12, 2024

a = 6.4233

b = -0.0007

s = 0.0189

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0007) – 1
= -23.27%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0189) – 1
= 7.84%

February 22, 2024 calculations

Top border of price channel:

Exp(Y1,151)
= Exp(a + b × X1,151 + 2 × s)
= Exp(a + b × 1,672 + 2 × s)
= Exp(6.4233 + -0.0007 × 1,672 + 2 × 0.0189)
= Exp(5.2478)
= $190.14

Bottom border of price channel:

Exp(Y1,151)
= Exp(a + b × X1,151 – 2 × s)
= Exp(a + b × 1,672 – 2 × s)
= Exp(6.4233 + -0.0007 × 1,672 – 2 × 0.0189)
= Exp(5.1723)
= $176.32

July 12, 2024 calculations

Top border of price channel:

Exp(Y1,248)
= Exp(a + b × X1,248 + 2 × s)
= Exp(a + b × 1,813 + 2 × s)
= Exp(6.4233 + -0.0007 × 1,813 + 2 × 0.0189)
= Exp(5.1455)
= $171.65

Bottom border of price channel:

Exp(Y1,248)
= Exp(a + b × X1,248 – 2 × s)
= Exp(a + b × 1,813 – 2 × s)
= Exp(6.4233 + -0.0007 × 1,813 – 2 × 0.0189)
= Exp(5.0700)
= $159.17

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 23.27% per annum.
  • AME price at the close of July 25, 2024 was $168.52 and was inside the primary price channel.

Secondary Trend

Start date: May 2, 2024
End date: July 25, 2024

a = 4.9979

b = 0.0001

s = 0.0168

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 2.73%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0168) – 1
= 6.94%

May 2, 2024 calculations

Top border of price channel:

Exp(Y1,200)
= Exp(a + b × X1,200 + 2 × s)
= Exp(a + b × 1,742 + 2 × s)
= Exp(4.9979 + 0.0001 × 1,742 + 2 × 0.0168)
= Exp(5.1601)
= $174.18

Bottom border of price channel:

Exp(Y1,200)
= Exp(a + b × X1,200 – 2 × s)
= Exp(a + b × 1,742 – 2 × s)
= Exp(4.9979 + 0.0001 × 1,742 – 2 × 0.0168)
= Exp(5.0930)
= $162.87

July 25, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(4.9979 + 0.0001 × 1,826 + 2 × 0.0168)
= Exp(5.1663)
= $175.26

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.9979 + 0.0001 × 1,826 – 2 × 0.0168)
= Exp(5.0992)
= $163.89

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 2.73% per annum.
  • AME price at the close of July 25, 2024 was inside the secondary price channel.