Stock Price Trends

Lockheed Martin Corporation (LMT)

Lockheed Martin Corporation is an American aerospace, defense, information security, and technology company with worldwide interests. It is headquartered in North Bethesda, Maryland, in the Washington, D.C., area.

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 5.43% per annum.
  • LMT price at the close of April 26, 2024 was $461.29 and was higher than the top border of the primary price channel by $8.21 (1.81%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 64.79% per annum.
  • LMT price at the close of April 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 LMT 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: October 26, 2022
End date: March 21, 2024

a = 6.3335

b = -0.0002

s = 0.0307

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -5.43%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0307) – 1
= 13.04%

October 26, 2022 calculations

Top border of price channel:

Exp(Y882)
= Exp(a + b × X882 + 2 × s)
= Exp(a + b × 1,276 + 2 × s)
= Exp(6.3335 + -0.0002 × 1,276 + 2 × 0.0307)
= Exp(6.1998)
= $492.66

Bottom border of price channel:

Exp(Y882)
= Exp(a + b × X882 – 2 × s)
= Exp(a + b × 1,276 – 2 × s)
= Exp(6.3335 + -0.0002 × 1,276 – 2 × 0.0307)
= Exp(6.0772)
= $435.81

March 21, 2024 calculations

Top border of price channel:

Exp(Y1,233)
= Exp(a + b × X1,233 + 2 × s)
= Exp(a + b × 1,788 + 2 × s)
= Exp(6.3335 + -0.0002 × 1,788 + 2 × 0.0307)
= Exp(6.1216)
= $455.58

Bottom border of price channel:

Exp(Y1,233)
= Exp(a + b × X1,233 – 2 × s)
= Exp(a + b × 1,788 – 2 × s)
= Exp(6.3335 + -0.0002 × 1,788 – 2 × 0.0307)
= Exp(5.9989)
= $403.01

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 5.43% per annum.
  • LMT price at the close of April 26, 2024 was $461.29 and was higher than the top border of the primary price channel by $8.21 (1.81%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: February 13, 2024
End date: April 26, 2024

a = 3.6430

b = 0.0014

s = 0.0078

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0014) – 1
= 64.79%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0078) – 1
= 3.17%

February 13, 2024 calculations

Top border of price channel:

Exp(Y1,207)
= Exp(a + b × X1,207 + 2 × s)
= Exp(a + b × 1,751 + 2 × s)
= Exp(3.6430 + 0.0014 × 1,751 + 2 × 0.0078)
= Exp(6.0548)
= $426.15

Bottom border of price channel:

Exp(Y1,207)
= Exp(a + b × X1,207 – 2 × s)
= Exp(a + b × 1,751 – 2 × s)
= Exp(3.6430 + 0.0014 × 1,751 – 2 × 0.0078)
= Exp(6.0235)
= $413.04

April 26, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(3.6430 + 0.0014 × 1,824 + 2 × 0.0078)
= Exp(6.1547)
= $470.92

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.6430 + 0.0014 × 1,824 – 2 × 0.0078)
= Exp(6.1234)
= $456.44

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 64.79% per annum.
  • LMT price at the close of April 26, 2024 was inside the secondary price channel.