Globus Medical (GMED)
Globus Medical, Inc., a medical device company, develops and markets healthcare solutions for patients with musculoskeletal disorders. The company is headquartered in Audubon, Pennsylvania.
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 13.95% per annum.
- GMED price at the close of May 8, 2024 was $61.73 and was higher than the top border of the primary price channel by $2.41 (4.07%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 31.03% per annum.
- GMED price at the close of May 8, 2024 was higher than the top border of the secondary price channel by $0.12 (0.19%).
- 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 GMED 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: April 21, 2021
End date: May 7, 2024
a = 4.6603
b = -0.0004
s = 0.0872
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -13.95%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0872) – 1
= 41.75%
April 21, 2021 calculations
Top border of price channel:
Exp(Y491)
= Exp(a + b × X491 + 2 × s)
= Exp(a + b × 713 + 2 × s)
= Exp(4.6603 + -0.0004 × 713 + 2 × 0.0872)
= Exp(4.5411)
= $93.80
Bottom border of price channel:
Exp(Y491)
= Exp(a + b × X491 – 2 × s)
= Exp(a + b × 713 – 2 × s)
= Exp(4.6603 + -0.0004 × 713 – 2 × 0.0872)
= Exp(4.1922)
= $66.17
May 7, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(4.6603 + -0.0004 × 1,825 + 2 × 0.0872)
= Exp(4.0833)
= $59.34
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(4.6603 + -0.0004 × 1,825 – 2 × 0.0872)
= Exp(3.7344)
= $41.86
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 13.95% per annum.
- GMED price at the close of May 8, 2024 was $61.73 and was higher than the top border of the primary price channel by $2.41 (4.07%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: October 24, 2023
End date: May 8, 2024
a = 2.6541
b = 0.0007
s = 0.0574
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 31.03%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0574) – 1
= 25.83%
October 24, 2023 calculations
Top border of price channel:
Exp(Y1,123)
= Exp(a + b × X1,123 + 2 × s)
= Exp(a + b × 1,629 + 2 × s)
= Exp(2.6541 + 0.0007 × 1,629 + 2 × 0.0574)
= Exp(3.9750)
= $53.25
Bottom border of price channel:
Exp(Y1,123)
= Exp(a + b × X1,123 – 2 × s)
= Exp(a + b × 1,629 – 2 × s)
= Exp(2.6541 + 0.0007 × 1,629 – 2 × 0.0574)
= Exp(3.7452)
= $42.32
May 8, 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(2.6541 + 0.0007 × 1,826 + 2 × 0.0574)
= Exp(4.1208)
= $61.61
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.6541 + 0.0007 × 1,826 – 2 × 0.0574)
= Exp(3.8911)
= $48.96
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 31.03% per annum.
- GMED price at the close of May 8, 2024 was higher than the top border of the secondary price channel by $0.12 (0.19%).