Stock Price Trends

Fabrinet (FN)

Fabrinet offers optical packaging and precision electronic, electromechanical and optical manufacturing services in North America, Asia-Pacific and Europe. The company is headquartered in George Town, the Cayman Islands.

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 129.53% per annum.
  • FN price at the close of July 25, 2024 was $216.44 and was lower than the bottom border of the primary price channel by $35.68 (14.15%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 41.27% per annum.
  • FN price at the close of July 25, 2024 was inside the secondary price channel.

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 FN 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: March 15, 2023
End date: March 15, 2024

a = 1.5437

b = 0.0023

s = 0.0852

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0023) – 1
= 129.53%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0852) – 1
= 40.60%

March 15, 2023 calculations

Top border of price channel:

Exp(Y915)
= Exp(a + b × X915 + 2 × s)
= Exp(a + b × 1,328 + 2 × s)
= Exp(1.5437 + 0.0023 × 1,328 + 2 × 0.0852)
= Exp(4.7370)
= $114.09

Bottom border of price channel:

Exp(Y915)
= Exp(a + b × X915 – 2 × s)
= Exp(a + b × 1,328 – 2 × s)
= Exp(1.5437 + 0.0023 × 1,328 – 2 × 0.0852)
= Exp(4.3963)
= $81.15

March 15, 2024 calculations

Top border of price channel:

Exp(Y1,167)
= Exp(a + b × X1,167 + 2 × s)
= Exp(a + b × 1,694 + 2 × s)
= Exp(1.5437 + 0.0023 × 1,694 + 2 × 0.0852)
= Exp(5.5702)
= $262.47

Bottom border of price channel:

Exp(Y1,167)
= Exp(a + b × X1,167 – 2 × s)
= Exp(a + b × 1,694 – 2 × s)
= Exp(1.5437 + 0.0023 × 1,694 – 2 × 0.0852)
= Exp(5.2294)
= $186.69

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 129.53% per annum.
  • FN price at the close of July 25, 2024 was $216.44 and was lower than the bottom border of the primary price channel by $35.68 (14.15%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: August 22, 2023
End date: May 13, 2024

a = 3.6573

b = 0.0009

s = 0.0825

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0009) – 1
= 41.27%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0825) – 1
= 39.07%

August 22, 2023 calculations

Top border of price channel:

Exp(Y1,025)
= Exp(a + b × X1,025 + 2 × s)
= Exp(a + b × 1,488 + 2 × s)
= Exp(3.6573 + 0.0009 × 1,488 + 2 × 0.0825)
= Exp(5.2308)
= $186.94

Bottom border of price channel:

Exp(Y1,025)
= Exp(a + b × X1,025 – 2 × s)
= Exp(a + b × 1,488 – 2 × s)
= Exp(3.6573 + 0.0009 × 1,488 – 2 × 0.0825)
= Exp(4.9010)
= $134.42

May 13, 2024 calculations

Top border of price channel:

Exp(Y1,207)
= Exp(a + b × X1,207 + 2 × s)
= Exp(a + b × 1,753 + 2 × s)
= Exp(3.6573 + 0.0009 × 1,753 + 2 × 0.0825)
= Exp(5.4816)
= $240.24

Bottom border of price channel:

Exp(Y1,207)
= Exp(a + b × X1,207 – 2 × s)
= Exp(a + b × 1,753 – 2 × s)
= Exp(3.6573 + 0.0009 × 1,753 – 2 × 0.0825)
= Exp(5.1518)
= $172.75

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 41.27% per annum.
  • FN price at the close of July 25, 2024 was inside the secondary price channel.