Edwards Lifesciences Corp (EW)
Edwards Lifesciences is an American medical technology company headquartered in Irvine, California, specializing in artificial heart valves and hemodynamic monitoring.
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 19.56% per annum.
- EW price at the close of May 7, 2024 was $85.84 and was higher than the top border of the primary price channel by $7.47 (9.53%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 136.22% per annum.
- EW price at the close of May 7, 2024 was lower than the bottom border of the secondary price channel by $7.83 (8.36%). This indicates a possible reversal in the secondary trend direction.
- 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 EW 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 21, 2021
End date: January 30, 2024
a = 5.2612
b = -0.0006
s = 0.0947
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -19.56%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0947) – 1
= 46.06%
June 21, 2021 calculations
Top border of price channel:
Exp(Y534)
= Exp(a + b × X534 + 2 × s)
= Exp(a + b × 775 + 2 × s)
= Exp(5.2612 + -0.0006 × 775 + 2 × 0.0947)
= Exp(4.9884)
= $146.70
Bottom border of price channel:
Exp(Y534)
= Exp(a + b × X534 – 2 × s)
= Exp(a + b × 775 – 2 × s)
= Exp(5.2612 + -0.0006 × 775 – 2 × 0.0947)
= Exp(4.6096)
= $100.44
January 30, 2024 calculations
Top border of price channel:
Exp(Y1,190)
= Exp(a + b × X1,190 + 2 × s)
= Exp(a + b × 1,728 + 2 × s)
= Exp(5.2612 + -0.0006 × 1,728 + 2 × 0.0947)
= Exp(4.4199)
= $83.09
Bottom border of price channel:
Exp(Y1,190)
= Exp(a + b × X1,190 – 2 × s)
= Exp(a + b × 1,728 – 2 × s)
= Exp(5.2612 + -0.0006 × 1,728 – 2 × 0.0947)
= Exp(4.0411)
= $56.89
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 19.56% per annum.
- EW price at the close of May 7, 2024 was $85.84 and was higher than the top border of the primary price channel by $7.47 (9.53%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: October 18, 2023
End date: April 12, 2024
a = 0.3212
b = 0.0024
s = 0.0408
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0024) – 1
= 136.22%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0408) – 1
= 17.74%
October 18, 2023 calculations
Top border of price channel:
Exp(Y1,120)
= Exp(a + b × X1,120 + 2 × s)
= Exp(a + b × 1,624 + 2 × s)
= Exp(0.3212 + 0.0024 × 1,624 + 2 × 0.0408)
= Exp(4.2274)
= $68.54
Bottom border of price channel:
Exp(Y1,120)
= Exp(a + b × X1,120 – 2 × s)
= Exp(a + b × 1,624 – 2 × s)
= Exp(0.3212 + 0.0024 × 1,624 – 2 × 0.0408)
= Exp(4.0641)
= $58.21
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(0.3212 + 0.0024 × 1,801 + 2 × 0.0408)
= Exp(4.6442)
= $103.99
Bottom border of price channel:
Exp(Y1,241)
= Exp(a + b × X1,241 – 2 × s)
= Exp(a + b × 1,801 – 2 × s)
= Exp(0.3212 + 0.0024 × 1,801 – 2 × 0.0408)
= Exp(4.4809)
= $88.32
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 136.22% per annum.
- EW price at the close of May 7, 2024 was lower than the bottom border of the secondary price channel by $7.83 (8.36%). This indicates a possible reversal in the secondary trend direction.