GE Aerospace (GE)
General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.
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 99.62% per annum.
- GE price at the close of July 26, 2024 was $169.81 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 1.73% per annum.
- GE price at the close of July 26, 2024 was higher than the top border of the secondary price channel by $1.36 (0.81%). 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 GE 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 10, 2022
End date: July 26, 2024
a = 1.6711
b = 0.0019
s = 0.0887
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0019) – 1
= 99.62%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0887) – 1
= 42.58%
June 10, 2022 calculations
Top border of price channel:
Exp(Y724)
= Exp(a + b × X724 + 2 × s)
= Exp(a + b × 1,047 + 2 × s)
= Exp(1.6711 + 0.0019 × 1,047 + 2 × 0.0887)
= Exp(3.8313)
= $46.12
Bottom border of price channel:
Exp(Y724)
= Exp(a + b × X724 – 2 × s)
= Exp(a + b × 1,047 – 2 × s)
= Exp(1.6711 + 0.0019 × 1,047 – 2 × 0.0887)
= Exp(3.4766)
= $32.35
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(1.6711 + 0.0019 × 1,824 + 2 × 0.0887)
= Exp(5.3028)
= $200.90
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(1.6711 + 0.0019 × 1,824 – 2 × 0.0887)
= Exp(4.9481)
= $140.90
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 99.62% per annum.
- GE price at the close of July 26, 2024 was $169.81 and was inside the primary price channel.
Secondary Trend
Start date: April 23, 2024
End date: July 26, 2024
a = 5.1736
b = 0.0000
s = 0.0201
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= -1.73%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0201) – 1
= 8.36%
April 23, 2024 calculations
Top border of price channel:
Exp(Y1,192)
= Exp(a + b × X1,192 + 2 × s)
= Exp(a + b × 1,730 + 2 × s)
= Exp(5.1736 + 0.0000 × 1,730 + 2 × 0.0201)
= Exp(5.1311)
= $169.21
Bottom border of price channel:
Exp(Y1,192)
= Exp(a + b × X1,192 – 2 × s)
= Exp(a + b × 1,730 – 2 × s)
= Exp(5.1736 + 0.0000 × 1,730 – 2 × 0.0201)
= Exp(5.0508)
= $156.14
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(5.1736 + 0.0000 × 1,824 + 2 × 0.0201)
= Exp(5.1266)
= $168.45
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(5.1736 + 0.0000 × 1,824 – 2 × 0.0201)
= Exp(5.0463)
= $155.44
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 1.73% per annum.
- GE price at the close of July 26, 2024 was higher than the top border of the secondary price channel by $1.36 (0.81%). This indicates a possible reversal in the secondary trend direction.