Stock Price Trends

Cirrus Logic Inc (CRUS)

Cirrus Logic, Inc., a factory-less semiconductor company, offers high-precision, low-power mixed signal processing solutions in the United States and internationally. The company is headquartered in Austin, Texas.

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 5.64% per annum.
  • CRUS price at the close of May 7, 2024 was $91.13 and was higher than the top border of the primary price channel by $10.49 (13.00%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 69.11% per annum.
  • CRUS price at the close of May 7, 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 CRUS 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: November 11, 2020
End date: January 9, 2023

a = 4.5383

b = -0.0002

s = 0.0710

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -5.64%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0710) – 1
= 32.86%

November 11, 2020 calculations

Top border of price channel:

Exp(Y383)
= Exp(a + b × X383 + 2 × s)
= Exp(a + b × 553 + 2 × s)
= Exp(4.5383 + -0.0002 × 553 + 2 × 0.0710)
= Exp(4.5925)
= $98.74

Bottom border of price channel:

Exp(Y383)
= Exp(a + b × X383 – 2 × s)
= Exp(a + b × 553 – 2 × s)
= Exp(4.5383 + -0.0002 × 553 – 2 × 0.0710)
= Exp(4.3083)
= $74.32

January 9, 2023 calculations

Top border of price channel:

Exp(Y925)
= Exp(a + b × X925 + 2 × s)
= Exp(a + b × 1,342 + 2 × s)
= Exp(4.5383 + -0.0002 × 1,342 + 2 × 0.0710)
= Exp(4.4670)
= $87.10

Bottom border of price channel:

Exp(Y925)
= Exp(a + b × X925 – 2 × s)
= Exp(a + b × 1,342 – 2 × s)
= Exp(4.5383 + -0.0002 × 1,342 – 2 × 0.0710)
= Exp(4.1829)
= $65.55

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 5.64% per annum.
  • CRUS price at the close of May 7, 2024 was $91.13 and was higher than the top border of the primary price channel by $10.49 (13.00%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: September 7, 2023
End date: April 12, 2024

a = 1.9465

b = 0.0014

s = 0.0461

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0014) – 1
= 69.11%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0461) – 1
= 20.25%

September 7, 2023 calculations

Top border of price channel:

Exp(Y1,091)
= Exp(a + b × X1,091 + 2 × s)
= Exp(a + b × 1,583 + 2 × s)
= Exp(1.9465 + 0.0014 × 1,583 + 2 × 0.0461)
= Exp(4.3174)
= $74.99

Bottom border of price channel:

Exp(Y1,091)
= Exp(a + b × X1,091 – 2 × s)
= Exp(a + b × 1,583 – 2 × s)
= Exp(1.9465 + 0.0014 × 1,583 – 2 × 0.0461)
= Exp(4.1330)
= $62.36

April 12, 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(1.9465 + 0.0014 × 1,801 + 2 × 0.0461)
= Exp(4.6312)
= $102.63

Bottom border of price channel:

Exp(Y1,241)
= Exp(a + b × X1,241 – 2 × s)
= Exp(a + b × 1,801 – 2 × s)
= Exp(1.9465 + 0.0014 × 1,801 – 2 × 0.0461)
= Exp(4.4468)
= $85.35

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 69.11% per annum.
  • CRUS price at the close of May 7, 2024 was inside the secondary price channel.