Gates Industrial Corporation plc (GTES)
Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. The company is headquartered in Denver, Colorado.
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 27.66% per annum.
- GTES price at the close of April 29, 2025 was $17.98 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 81.80% per annum.
- GTES price at the close of April 29, 2025 was higher than the top border of the secondary price channel by $0.62 (3.55%). 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 GTES 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 13, 2022
End date: April 2, 2025
a = 1.8001
b = 0.0007
s = 0.1064
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 27.66%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1064) – 1
= 53.03%
June 13, 2022 calculations
Top border of price channel:
Exp(Y534)
= Exp(a + b × X534 + 2 × s)
= Exp(a + b × 774 + 2 × s)
= Exp(1.8001 + 0.0007 × 774 + 2 × 0.1064)
= Exp(2.5307)
= $12.56
Bottom border of price channel:
Exp(Y534)
= Exp(a + b × X534 – 2 × s)
= Exp(a + b × 774 – 2 × s)
= Exp(1.8001 + 0.0007 × 774 – 2 × 0.1064)
= Exp(2.1052)
= $8.21
April 2, 2025 calculations
Top border of price channel:
Exp(Y1,237)
= Exp(a + b × X1,237 + 2 × s)
= Exp(a + b × 1,798 + 2 × s)
= Exp(1.8001 + 0.0007 × 1,798 + 2 × 0.1064)
= Exp(3.2159)
= $24.93
Bottom border of price channel:
Exp(Y1,237)
= Exp(a + b × X1,237 – 2 × s)
= Exp(a + b × 1,798 – 2 × s)
= Exp(1.8001 + 0.0007 × 1,798 – 2 × 0.1064)
= Exp(2.7904)
= $16.29
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 27.66% per annum.
- GTES price at the close of April 29, 2025 was $17.98 and was inside the primary price channel.
Secondary Trend
Start date: February 6, 2025
End date: April 23, 2025
a = 11.2858
b = -0.0047
s = 0.0441
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0047) – 1
= -81.80%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0441) – 1
= 19.30%
February 6, 2025 calculations
Top border of price channel:
Exp(Y1,199)
= Exp(a + b × X1,199 + 2 × s)
= Exp(a + b × 1,743 + 2 × s)
= Exp(11.2858 + -0.0047 × 1,743 + 2 × 0.0441)
= Exp(3.2371)
= $25.46
Bottom border of price channel:
Exp(Y1,199)
= Exp(a + b × X1,199 – 2 × s)
= Exp(a + b × 1,743 – 2 × s)
= Exp(11.2858 + -0.0047 × 1,743 – 2 × 0.0441)
= Exp(3.0607)
= $21.34
April 23, 2025 calculations
Top border of price channel:
Exp(Y1,251)
= Exp(a + b × X1,251 + 2 × s)
= Exp(a + b × 1,819 + 2 × s)
= Exp(11.2858 + -0.0047 × 1,819 + 2 × 0.0441)
= Exp(2.8823)
= $17.86
Bottom border of price channel:
Exp(Y1,251)
= Exp(a + b × X1,251 – 2 × s)
= Exp(a + b × 1,819 – 2 × s)
= Exp(11.2858 + -0.0047 × 1,819 – 2 × 0.0441)
= Exp(2.7059)
= $14.97
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 81.80% per annum.
- GTES price at the close of April 29, 2025 was higher than the top border of the secondary price channel by $0.62 (3.55%). This indicates a possible reversal in the secondary trend direction.