Danaher Corporation (DHR)
Danaher Corporation is an American globally diversified conglomerate with its headquarters in Washington, D.C.. The company designs, manufactures, and markets professional, medical, industrial, and commercial products and services. The company's 3 platforms are Life Sciences, Diagnostics, and Environmental & Applied Solutions.
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 10.20% per annum.
- DHR price at the close of May 1, 2024 was $246.89 and was higher than the top border of the primary price channel by $24.61 (11.07%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 21.75% per annum.
- DHR price at the close of May 1, 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 DHR 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: June 22, 2021
End date: December 12, 2023
a = 5.8218
b = -0.0003
s = 0.0600
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.20%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0600) – 1
= 27.15%
June 22, 2021 calculations
Top border of price channel:
Exp(Y539)
= Exp(a + b × X539 + 2 × s)
= Exp(a + b × 782 + 2 × s)
= Exp(5.8218 + -0.0003 × 782 + 2 × 0.0600)
= Exp(5.7115)
= $302.33
Bottom border of price channel:
Exp(Y539)
= Exp(a + b × X539 – 2 × s)
= Exp(a + b × 782 – 2 × s)
= Exp(5.8218 + -0.0003 × 782 – 2 × 0.0600)
= Exp(5.4713)
= $237.78
December 12, 2023 calculations
Top border of price channel:
Exp(Y1,162)
= Exp(a + b × X1,162 + 2 × s)
= Exp(a + b × 1,685 + 2 × s)
= Exp(5.8218 + -0.0003 × 1,685 + 2 × 0.0600)
= Exp(5.4455)
= $231.71
Bottom border of price channel:
Exp(Y1,162)
= Exp(a + b × X1,162 – 2 × s)
= Exp(a + b × 1,685 – 2 × s)
= Exp(5.8218 + -0.0003 × 1,685 – 2 × 0.0600)
= Exp(5.2053)
= $182.24
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 10.20% per annum.
- DHR price at the close of May 1, 2024 was $246.89 and was higher than the top border of the primary price channel by $24.61 (11.07%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: April 25, 2023
End date: May 1, 2024
a = 4.5236
b = 0.0005
s = 0.0515
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 21.75%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0515) – 1
= 22.90%
April 25, 2023 calculations
Top border of price channel:
Exp(Y1,002)
= Exp(a + b × X1,002 + 2 × s)
= Exp(a + b × 1,454 + 2 × s)
= Exp(4.5236 + 0.0005 × 1,454 + 2 × 0.0515)
= Exp(5.4108)
= $223.81
Bottom border of price channel:
Exp(Y1,002)
= Exp(a + b × X1,002 – 2 × s)
= Exp(a + b × 1,454 – 2 × s)
= Exp(4.5236 + 0.0005 × 1,454 – 2 × 0.0515)
= Exp(5.2046)
= $182.11
May 1, 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(4.5236 + 0.0005 × 1,826 + 2 × 0.0515)
= Exp(5.6114)
= $273.53
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.5236 + 0.0005 × 1,826 – 2 × 0.0515)
= Exp(5.4052)
= $222.56
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 21.75% per annum.
- DHR price at the close of May 1, 2024 was inside the secondary price channel.