Stock Price Trends

Perrigo Company PLC (PRGO)

Perrigo Company plc is an American Irish registered manufacturer of private label over-the-counter pharmaceuticals.

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 46.17% per annum.
  • PRGO price at the close of May 9, 2024 was $31.02 and was lower than the bottom border of the primary price channel by $1.86 (5.66%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 18.51% per annum.
  • PRGO price at the close of May 9, 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 PRGO 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 3, 2023
End date: February 26, 2024

a = 1.6722

b = 0.0010

s = 0.0391

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 46.17%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0391) – 1
= 16.93%

October 3, 2023 calculations

Top border of price channel:

Exp(Y1,107)
= Exp(a + b × X1,107 + 2 × s)
= Exp(a + b × 1,607 + 2 × s)
= Exp(1.6722 + 0.0010 × 1,607 + 2 × 0.0391)
= Exp(3.4216)
= $30.62

Bottom border of price channel:

Exp(Y1,107)
= Exp(a + b × X1,107 – 2 × s)
= Exp(a + b × 1,607 – 2 × s)
= Exp(1.6722 + 0.0010 × 1,607 – 2 × 0.0391)
= Exp(3.2651)
= $26.18

February 26, 2024 calculations

Top border of price channel:

Exp(Y1,206)
= Exp(a + b × X1,206 + 2 × s)
= Exp(a + b × 1,753 + 2 × s)
= Exp(1.6722 + 0.0010 × 1,753 + 2 × 0.0391)
= Exp(3.5734)
= $35.64

Bottom border of price channel:

Exp(Y1,206)
= Exp(a + b × X1,206 – 2 × s)
= Exp(a + b × 1,753 – 2 × s)
= Exp(1.6722 + 0.0010 × 1,753 – 2 × 0.0391)
= Exp(3.4170)
= $30.48

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 46.17% per annum.
  • PRGO price at the close of May 9, 2024 was $31.02 and was lower than the bottom border of the primary price channel by $1.86 (5.66%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: December 19, 2023
End date: April 25, 2024

a = 4.4210

b = -0.0006

s = 0.0525

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -18.51%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0525) – 1
= 23.35%

December 19, 2023 calculations

Top border of price channel:

Exp(Y1,161)
= Exp(a + b × X1,161 + 2 × s)
= Exp(a + b × 1,684 + 2 × s)
= Exp(4.4210 + -0.0006 × 1,684 + 2 × 0.0525)
= Exp(3.5817)
= $35.93

Bottom border of price channel:

Exp(Y1,161)
= Exp(a + b × X1,161 – 2 × s)
= Exp(a + b × 1,684 – 2 × s)
= Exp(4.4210 + -0.0006 × 1,684 – 2 × 0.0525)
= Exp(3.3719)
= $29.13

April 25, 2024 calculations

Top border of price channel:

Exp(Y1,248)
= Exp(a + b × X1,248 + 2 × s)
= Exp(a + b × 1,812 + 2 × s)
= Exp(4.4210 + -0.0006 × 1,812 + 2 × 0.0525)
= Exp(3.5099)
= $33.45

Bottom border of price channel:

Exp(Y1,248)
= Exp(a + b × X1,248 – 2 × s)
= Exp(a + b × 1,812 – 2 × s)
= Exp(4.4210 + -0.0006 × 1,812 – 2 × 0.0525)
= Exp(3.3001)
= $27.12

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 18.51% per annum.
  • PRGO price at the close of May 9, 2024 was inside the secondary price channel.