Stock Price Trends

Insulet Corporation (PODD)

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company is headquartered in Acton, Massachusetts.

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 40.26% per annum.
  • PODD price at the close of May 7, 2024 was $184.28 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 19.26% per annum.
  • PODD price at the close of May 7, 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 PODD 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: November 4, 2022
End date: May 7, 2024

a = 7.6272

b = -0.0014

s = 0.1580

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0014) – 1
= -40.26%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1580) – 1
= 88.14%

November 4, 2022 calculations

Top border of price channel:

Exp(Y882)
= Exp(a + b × X882 + 2 × s)
= Exp(a + b × 1,276 + 2 × s)
= Exp(7.6272 + -0.0014 × 1,276 + 2 × 0.1580)
= Exp(6.1420)
= $465.00

Bottom border of price channel:

Exp(Y882)
= Exp(a + b × X882 – 2 × s)
= Exp(a + b × 1,276 – 2 × s)
= Exp(7.6272 + -0.0014 × 1,276 – 2 × 0.1580)
= Exp(5.5100)
= $247.16

May 7, 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(7.6272 + -0.0014 × 1,826 + 2 × 0.1580)
= Exp(5.3657)
= $213.93

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(7.6272 + -0.0014 × 1,826 – 2 × 0.1580)
= Exp(4.7336)
= $113.71

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 40.26% per annum.
  • PODD price at the close of May 7, 2024 was $184.28 and was inside the primary price channel.

Secondary Trend

Start date: September 7, 2023
End date: May 7, 2024

a = 4.3424

b = 0.0005

s = 0.1199

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 19.26%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1199) – 1
= 61.57%

September 7, 2023 calculations

Top border of price channel:

Exp(Y1,091)
= Exp(a + b × X1,091 + 2 × s)
= Exp(a + b × 1,583 + 2 × s)
= Exp(4.3424 + 0.0005 × 1,583 + 2 × 0.1199)
= Exp(5.3462)
= $209.81

Bottom border of price channel:

Exp(Y1,091)
= Exp(a + b × X1,091 – 2 × s)
= Exp(a + b × 1,583 – 2 × s)
= Exp(4.3424 + 0.0005 × 1,583 – 2 × 0.1199)
= Exp(4.8664)
= $129.85

May 7, 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(4.3424 + 0.0005 × 1,826 + 2 × 0.1199)
= Exp(5.4634)
= $235.91

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.3424 + 0.0005 × 1,826 – 2 × 0.1199)
= Exp(4.9837)
= $146.01

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 19.26% per annum.
  • PODD price at the close of May 7, 2024 was inside the secondary price channel.