Stock Price Trends

Eerly Govt Ppty Inc (DEA)

Easterly Government Properties, Inc. (NYSE: DEA) is headquartered in Washington, DC and focuses primarily on the acquisition, development, and management of Class A commercial properties that are leased to the US government.

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 20.49% per annum.
  • DEA price at the close of July 25, 2024 was $13.70 and was higher than the top border of the primary price channel by $2.69 (24.47%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 70.87% per annum.
  • DEA 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 DEA 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: July 9, 2021
End date: December 6, 2023

a = 3.4183

b = -0.0006

s = 0.0637

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -20.49%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0637) – 1
= 29.00%

July 9, 2021 calculations

Top border of price channel:

Exp(Y492)
= Exp(a + b × X492 + 2 × s)
= Exp(a + b × 714 + 2 × s)
= Exp(3.4183 + -0.0006 × 714 + 2 × 0.0637)
= Exp(3.0971)
= $22.13

Bottom border of price channel:

Exp(Y492)
= Exp(a + b × X492 – 2 × s)
= Exp(a + b × 714 – 2 × s)
= Exp(3.4183 + -0.0006 × 714 – 2 × 0.0637)
= Exp(2.8424)
= $17.16

December 6, 2023 calculations

Top border of price channel:

Exp(Y1,099)
= Exp(a + b × X1,099 + 2 × s)
= Exp(a + b × 1,594 + 2 × s)
= Exp(3.4183 + -0.0006 × 1,594 + 2 × 0.0637)
= Exp(2.5443)
= $12.73

Bottom border of price channel:

Exp(Y1,099)
= Exp(a + b × X1,099 – 2 × s)
= Exp(a + b × 1,594 – 2 × s)
= Exp(3.4183 + -0.0006 × 1,594 – 2 × 0.0637)
= Exp(2.2896)
= $9.87

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 20.49% per annum.
  • DEA price at the close of July 25, 2024 was $13.70 and was higher than the top border of the primary price channel by $2.69 (24.47%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: March 14, 2024
End date: July 25, 2024

a = -0.1069

b = 0.0015

s = 0.0263

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0015) – 1
= 70.87%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0263) – 1
= 11.08%

March 14, 2024 calculations

Top border of price channel:

Exp(Y1,166)
= Exp(a + b × X1,166 + 2 × s)
= Exp(a + b × 1,693 + 2 × s)
= Exp(-0.1069 + 0.0015 × 1,693 + 2 × 0.0263)
= Exp(2.4306)
= $11.37

Bottom border of price channel:

Exp(Y1,166)
= Exp(a + b × X1,166 – 2 × s)
= Exp(a + b × 1,693 – 2 × s)
= Exp(-0.1069 + 0.0015 × 1,693 – 2 × 0.0263)
= Exp(2.3255)
= $10.23

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(-0.1069 + 0.0015 × 1,826 + 2 × 0.0263)
= Exp(2.6258)
= $13.82

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-0.1069 + 0.0015 × 1,826 – 2 × 0.0263)
= Exp(2.5207)
= $12.44

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 70.87% per annum.
  • DEA price at the close of July 25, 2024 was inside the secondary price channel.