Stock Price Trends

Motorola Solutions Inc (MSI)

Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.

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 43.80% per annum.
  • MSI price at the close of May 8, 2024 was $359.02 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 30.18% per annum.
  • MSI price at the close of May 8, 2024 was inside the secondary price channel.

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 MSI 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: August 4, 2023
End date: May 8, 2024

a = 4.0593

b = 0.0010

s = 0.0296

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 43.80%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0296) – 1
= 12.59%

August 4, 2023 calculations

Top border of price channel:

Exp(Y1,067)
= Exp(a + b × X1,067 + 2 × s)
= Exp(a + b × 1,548 + 2 × s)
= Exp(4.0593 + 0.0010 × 1,548 + 2 × 0.0296)
= Exp(5.6590)
= $286.87

Bottom border of price channel:

Exp(Y1,067)
= Exp(a + b × X1,067 – 2 × s)
= Exp(a + b × 1,548 – 2 × s)
= Exp(4.0593 + 0.0010 × 1,548 – 2 × 0.0296)
= Exp(5.5405)
= $254.80

May 8, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(4.0593 + 0.0010 × 1,826 + 2 × 0.0296)
= Exp(5.9357)
= $378.29

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.0593 + 0.0010 × 1,826 – 2 × 0.0296)
= Exp(5.8171)
= $336.00

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 43.80% per annum.
  • MSI price at the close of May 8, 2024 was $359.02 and was inside the primary price channel.

Secondary Trend

Start date: November 6, 2023
End date: May 8, 2024

a = 4.5399

b = 0.0007

s = 0.0213

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 30.18%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0213) – 1
= 8.88%

November 6, 2023 calculations

Top border of price channel:

Exp(Y1,132)
= Exp(a + b × X1,132 + 2 × s)
= Exp(a + b × 1,642 + 2 × s)
= Exp(4.5399 + 0.0007 × 1,642 + 2 × 0.0213)
= Exp(5.7690)
= $320.23

Bottom border of price channel:

Exp(Y1,132)
= Exp(a + b × X1,132 – 2 × s)
= Exp(a + b × 1,642 – 2 × s)
= Exp(4.5399 + 0.0007 × 1,642 – 2 × 0.0213)
= Exp(5.6840)
= $294.11

May 8, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(4.5399 + 0.0007 × 1,826 + 2 × 0.0213)
= Exp(5.9020)
= $365.77

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.5399 + 0.0007 × 1,826 – 2 × 0.0213)
= Exp(5.8169)
= $335.94

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 30.18% per annum.
  • MSI price at the close of May 8, 2024 was inside the secondary price channel.