3M Company (MMM)
The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.
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 24.60% per annum.
- MMM price at the close of April 26, 2024 was $91.83 and was higher than the top border of the primary price channel by $19.52 (27.00%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 3.45% per annum.
- MMM 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 MMM 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: March 10, 2021
End date: November 21, 2023
a = 5.5746
b = -0.0008
s = 0.0585
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0008) – 1
= -24.60%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0585) – 1
= 26.38%
March 10, 2021 calculations
Top border of price channel:
Exp(Y470)
= Exp(a + b × X470 + 2 × s)
= Exp(a + b × 681 + 2 × s)
= Exp(5.5746 + -0.0008 × 681 + 2 × 0.0585)
= Exp(5.1650)
= $175.03
Bottom border of price channel:
Exp(Y470)
= Exp(a + b × X470 – 2 × s)
= Exp(a + b × 681 – 2 × s)
= Exp(5.5746 + -0.0008 × 681 – 2 × 0.0585)
= Exp(4.9308)
= $138.50
November 21, 2023 calculations
Top border of price channel:
Exp(Y1,151)
= Exp(a + b × X1,151 + 2 × s)
= Exp(a + b × 1,667 + 2 × s)
= Exp(5.5746 + -0.0008 × 1,667 + 2 × 0.0585)
= Exp(4.4024)
= $81.64
Bottom border of price channel:
Exp(Y1,151)
= Exp(a + b × X1,151 – 2 × s)
= Exp(a + b × 1,667 – 2 × s)
= Exp(5.5746 + -0.0008 × 1,667 – 2 × 0.0585)
= Exp(4.1682)
= $64.60
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 24.60% per annum.
- MMM price at the close of April 26, 2024 was $91.83 and was higher than the top border of the primary price channel by $19.52 (27.00%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: February 21, 2023
End date: April 26, 2024
a = 4.2616
b = 0.0001
s = 0.0640
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 3.45%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0640) – 1
= 29.17%
February 21, 2023 calculations
Top border of price channel:
Exp(Y961)
= Exp(a + b × X961 + 2 × s)
= Exp(a + b × 1,394 + 2 × s)
= Exp(4.2616 + 0.0001 × 1,394 + 2 × 0.0640)
= Exp(4.5192)
= $91.76
Bottom border of price channel:
Exp(Y961)
= Exp(a + b × X961 – 2 × s)
= Exp(a + b × 1,394 – 2 × s)
= Exp(4.2616 + 0.0001 × 1,394 – 2 × 0.0640)
= Exp(4.2632)
= $71.04
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(4.2616 + 0.0001 × 1,824 + 2 × 0.0640)
= Exp(4.5591)
= $95.50
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.2616 + 0.0001 × 1,824 – 2 × 0.0640)
= Exp(4.3032)
= $73.93
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 3.45% per annum.
- MMM price at the close of April 26, 2024 was inside the secondary price channel.