Stock Price Trends

Hillenbrand Inc (HI)

Hillenbrand, Inc. is a diversified industrial company in the United States and internationally. The company is headquartered in Batesville, Indiana.

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 1.28% per annum.
  • HI price at the close of July 26, 2024 was $44.35 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 38.53% per annum.
  • HI price at the close of July 26, 2024 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 HI 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: January 6, 2021
End date: July 26, 2024

a = 3.7324

b = 0.0000

s = 0.0788

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 1.28%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0788) – 1
= 37.05%

January 6, 2021 calculations

Top border of price channel:

Exp(Y364)
= Exp(a + b × X364 + 2 × s)
= Exp(a + b × 527 + 2 × s)
= Exp(3.7324 + 0.0000 × 527 + 2 × 0.0788)
= Exp(3.9084)
= $49.82

Bottom border of price channel:

Exp(Y364)
= Exp(a + b × X364 – 2 × s)
= Exp(a + b × 527 – 2 × s)
= Exp(3.7324 + 0.0000 × 527 – 2 × 0.0788)
= Exp(3.5933)
= $36.35

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(3.7324 + 0.0000 × 1,824 + 2 × 0.0788)
= Exp(3.9538)
= $52.13

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.7324 + 0.0000 × 1,824 – 2 × 0.0788)
= Exp(3.6386)
= $38.04

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 1.28% per annum.
  • HI price at the close of July 26, 2024 was $44.35 and was inside the primary price channel.

Secondary Trend

Start date: March 6, 2024
End date: July 26, 2024

a = 6.1394

b = -0.0013

s = 0.0428

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0013) – 1
= -38.53%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0428) – 1
= 18.70%

March 6, 2024 calculations

Top border of price channel:

Exp(Y1,159)
= Exp(a + b × X1,159 + 2 × s)
= Exp(a + b × 1,682 + 2 × s)
= Exp(6.1394 + -0.0013 × 1,682 + 2 × 0.0428)
= Exp(3.9825)
= $53.65

Bottom border of price channel:

Exp(Y1,159)
= Exp(a + b × X1,159 – 2 × s)
= Exp(a + b × 1,682 – 2 × s)
= Exp(6.1394 + -0.0013 × 1,682 – 2 × 0.0428)
= Exp(3.8111)
= $45.20

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(6.1394 + -0.0013 × 1,824 + 2 × 0.0428)
= Exp(3.7932)
= $44.40

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(6.1394 + -0.0013 × 1,824 – 2 × 0.0428)
= Exp(3.6218)
= $37.41

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 38.53% per annum.
  • HI price at the close of July 26, 2024 was inside the secondary price channel.