Stock Price Trends

AeroVironment Inc (AVAV)

AeroVironment, Inc. designs, develops, produces, supports and operates a portfolio of products and services for government agencies and businesses. The company is headquartered in Arlington, Virginia.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 47.88% per annum.
  • AVAV price at the close of May 8, 2024 was $181.46 and was higher than the top border of the primary price channel by $11.21 (6.58%).
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 83.73% per annum.
  • AVAV price at the close of May 8, 2024 was higher than the top border of the secondary price channel by $0.65 (0.36%).

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 AVAV 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: September 29, 2022
End date: May 8, 2024

a = 3.0234

b = 0.0011

s = 0.0783

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 47.88%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0783) – 1
= 36.76%

September 29, 2022 calculations

Top border of price channel:

Exp(Y855)
= Exp(a + b × X855 + 2 × s)
= Exp(a + b × 1,239 + 2 × s)
= Exp(3.0234 + 0.0011 × 1,239 + 2 × 0.0783)
= Exp(4.5080)
= $90.74

Bottom border of price channel:

Exp(Y855)
= Exp(a + b × X855 – 2 × s)
= Exp(a + b × 1,239 – 2 × s)
= Exp(3.0234 + 0.0011 × 1,239 – 2 × 0.0783)
= Exp(4.1950)
= $66.35

May 8, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.0234 + 0.0011 × 1,826 + 2 × 0.0783)
= Exp(5.1373)
= $170.25

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.0234 + 0.0011 × 1,826 – 2 × 0.0783)
= Exp(4.8242)
= $124.49

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 47.88% per annum.
  • AVAV price at the close of May 8, 2024 was $181.46 and was higher than the top border of the primary price channel by $11.21 (6.58%).

Secondary Trend

Start date: June 14, 2023
End date: May 8, 2024

a = 2.0193

b = 0.0017

s = 0.0674

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0017) – 1
= 83.73%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0674) – 1
= 30.97%

June 14, 2023 calculations

Top border of price channel:

Exp(Y1,032)
= Exp(a + b × X1,032 + 2 × s)
= Exp(a + b × 1,497 + 2 × s)
= Exp(2.0193 + 0.0017 × 1,497 + 2 × 0.0674)
= Exp(4.6491)
= $104.50

Bottom border of price channel:

Exp(Y1,032)
= Exp(a + b × X1,032 – 2 × s)
= Exp(a + b × 1,497 – 2 × s)
= Exp(2.0193 + 0.0017 × 1,497 – 2 × 0.0674)
= Exp(4.3794)
= $79.79

May 8, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(2.0193 + 0.0017 × 1,826 + 2 × 0.0674)
= Exp(5.1975)
= $180.81

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.0193 + 0.0017 × 1,826 – 2 × 0.0674)
= Exp(4.9277)
= $138.06

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 83.73% per annum.
  • AVAV price at the close of May 8, 2024 was higher than the top border of the secondary price channel by $0.65 (0.36%).