Caterpillar Inc (CAT)
Caterpillar Inc. (often shortened to CAT) is an American Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network.
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 181.26% per annum.
- CAT price at the close of April 26, 2024 was $343.38 and was lower than the bottom border of the primary price channel by $25.21 (6.84%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 68.79% per annum.
- CAT price at the close of April 26, 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 CAT 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: October 25, 2023
End date: April 15, 2024
a = 0.7978
b = 0.0028
s = 0.0279
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0028) – 1
= 181.26%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0279) – 1
= 11.82%
October 25, 2023 calculations
Top border of price channel:
Exp(Y1,132)
= Exp(a + b × X1,132 + 2 × s)
= Exp(a + b × 1,640 + 2 × s)
= Exp(0.7978 + 0.0028 × 1,640 + 2 × 0.0279)
= Exp(5.5001)
= $244.71
Bottom border of price channel:
Exp(Y1,132)
= Exp(a + b × X1,132 – 2 × s)
= Exp(a + b × 1,640 – 2 × s)
= Exp(0.7978 + 0.0028 × 1,640 – 2 × 0.0279)
= Exp(5.3884)
= $218.85
April 15, 2024 calculations
Top border of price channel:
Exp(Y1,249)
= Exp(a + b × X1,249 + 2 × s)
= Exp(a + b × 1,813 + 2 × s)
= Exp(0.7978 + 0.0028 × 1,813 + 2 × 0.0279)
= Exp(5.9902)
= $399.50
Bottom border of price channel:
Exp(Y1,249)
= Exp(a + b × X1,249 – 2 × s)
= Exp(a + b × 1,813 – 2 × s)
= Exp(0.7978 + 0.0028 × 1,813 – 2 × 0.0279)
= Exp(5.8785)
= $357.28
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 181.26% per annum.
- CAT price at the close of April 26, 2024 was $343.38 and was lower than the bottom border of the primary price channel by $25.21 (6.84%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: April 3, 2024
End date: April 22, 2024
a = 11.6757
b = -0.0032
s = 0.0090
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0032) – 1
= -68.79%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0090) – 1
= 3.66%
April 3, 2024 calculations
Top border of price channel:
Exp(Y1,241)
= Exp(a + b × X1,241 + 2 × s)
= Exp(a + b × 1,801 + 2 × s)
= Exp(11.6757 + -0.0032 × 1,801 + 2 × 0.0090)
= Exp(5.9478)
= $382.92
Bottom border of price channel:
Exp(Y1,241)
= Exp(a + b × X1,241 – 2 × s)
= Exp(a + b × 1,801 – 2 × s)
= Exp(11.6757 + -0.0032 × 1,801 – 2 × 0.0090)
= Exp(5.9118)
= $369.38
April 22, 2024 calculations
Top border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,820 + 2 × s)
= Exp(11.6757 + -0.0032 × 1,820 + 2 × 0.0090)
= Exp(5.8872)
= $360.40
Bottom border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,820 – 2 × s)
= Exp(11.6757 + -0.0032 × 1,820 – 2 × 0.0090)
= Exp(5.8512)
= $347.66
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 68.79% per annum.
- CAT price at the close of April 26, 2024 was inside the secondary price channel.