Stock Price Trends

Heritage Financial Corporation (HFWA)

Heritage Financial Corporation is the banking holding company for Heritage Bank providing various financial services to small and medium-sized businesses and individuals in the United States. The company is headquartered in Olympia, Washington.

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 31.88% per annum.
  • HFWA price at the close of April 29, 2025 was $22.94 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 26.93% per annum.
  • HFWA price at the close of April 29, 2025 was inside the secondary price channel.
  • 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 HFWA 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 25, 2023
End date: April 3, 2025

a = 1.8516

b = 0.0008

s = 0.0807

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 31.88%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0807) – 1
= 38.09%

April 25, 2023 calculations

Top border of price channel:

Exp(Y751)
= Exp(a + b × X751 + 2 × s)
= Exp(a + b × 1,090 + 2 × s)
= Exp(1.8516 + 0.0008 × 1,090 + 2 × 0.0807)
= Exp(2.8394)
= $17.11

Bottom border of price channel:

Exp(Y751)
= Exp(a + b × X751 – 2 × s)
= Exp(a + b × 1,090 – 2 × s)
= Exp(1.8516 + 0.0008 × 1,090 – 2 × 0.0807)
= Exp(2.5167)
= $12.39

April 3, 2025 calculations

Top border of price channel:

Exp(Y1,238)
= Exp(a + b × X1,238 + 2 × s)
= Exp(a + b × 1,799 + 2 × s)
= Exp(1.8516 + 0.0008 × 1,799 + 2 × 0.0807)
= Exp(3.3769)
= $29.28

Bottom border of price channel:

Exp(Y1,238)
= Exp(a + b × X1,238 – 2 × s)
= Exp(a + b × 1,799 – 2 × s)
= Exp(1.8516 + 0.0008 × 1,799 – 2 × 0.0807)
= Exp(3.0542)
= $21.20

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 31.88% per annum.
  • HFWA price at the close of April 29, 2025 was $22.94 and was inside the primary price channel.

Secondary Trend

Start date: November 6, 2024
End date: April 29, 2025

a = 4.6857

b = -0.0009

s = 0.0363

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -26.93%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0363) – 1
= 15.63%

November 6, 2024 calculations

Top border of price channel:

Exp(Y1,138)
= Exp(a + b × X1,138 + 2 × s)
= Exp(a + b × 1,651 + 2 × s)
= Exp(4.6857 + -0.0009 × 1,651 + 2 × 0.0363)
= Exp(3.3389)
= $28.19

Bottom border of price channel:

Exp(Y1,138)
= Exp(a + b × X1,138 – 2 × s)
= Exp(a + b × 1,651 – 2 × s)
= Exp(4.6857 + -0.0009 × 1,651 – 2 × 0.0363)
= Exp(3.1937)
= $24.38

April 29, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(4.6857 + -0.0009 × 1,825 + 2 × 0.0363)
= Exp(3.1893)
= $24.27

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(4.6857 + -0.0009 × 1,825 – 2 × 0.0363)
= Exp(3.0441)
= $20.99

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 26.93% per annum.
  • HFWA price at the close of April 29, 2025 was inside the secondary price channel.