Stock Price Trends

Proto Labs Inc (PRLB)

Proto Labs, Inc., is an e-commerce-driven digital manufacturer of custom prototypes and on-demand production parts around the world. The company is headquartered in Maple Plain, Minnesota.

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 12.87% per annum.
  • PRLB price at the close of July 26, 2024 was $34.97 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 29.25% per annum.
  • PRLB price at the close of July 26, 2024 was higher than the top border of the secondary price channel by $1.77 (5.33%). This indicates a possible reversal in the secondary trend direction.
  • 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 PRLB 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: July 26, 2024

a = 2.9412

b = 0.0003

s = 0.1183

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 12.87%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1183) – 1
= 60.50%

November 4, 2022 calculations

Top border of price channel:

Exp(Y826)
= Exp(a + b × X826 + 2 × s)
= Exp(a + b × 1,194 + 2 × s)
= Exp(2.9412 + 0.0003 × 1,194 + 2 × 0.1183)
= Exp(3.5737)
= $35.65

Bottom border of price channel:

Exp(Y826)
= Exp(a + b × X826 – 2 × s)
= Exp(a + b × 1,194 – 2 × s)
= Exp(2.9412 + 0.0003 × 1,194 – 2 × 0.1183)
= Exp(3.1006)
= $22.21

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(2.9412 + 0.0003 × 1,824 + 2 × 0.1183)
= Exp(3.7826)
= $43.93

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(2.9412 + 0.0003 × 1,824 – 2 × 0.1183)
= Exp(3.3095)
= $27.37

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 12.87% per annum.
  • PRLB price at the close of July 26, 2024 was $34.97 and was inside the primary price channel.

Secondary Trend

Start date: November 20, 2023
End date: July 26, 2024

a = 5.1444

b = -0.0009

s = 0.0436

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -29.25%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0436) – 1
= 19.04%

November 20, 2023 calculations

Top border of price channel:

Exp(Y1,087)
= Exp(a + b × X1,087 + 2 × s)
= Exp(a + b × 1,575 + 2 × s)
= Exp(5.1444 + -0.0009 × 1,575 + 2 × 0.0436)
= Exp(3.7386)
= $42.04

Bottom border of price channel:

Exp(Y1,087)
= Exp(a + b × X1,087 – 2 × s)
= Exp(a + b × 1,575 – 2 × s)
= Exp(5.1444 + -0.0009 × 1,575 – 2 × 0.0436)
= Exp(3.5643)
= $35.31

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(5.1444 + -0.0009 × 1,824 + 2 × 0.0436)
= Exp(3.5025)
= $33.20

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(5.1444 + -0.0009 × 1,824 – 2 × 0.0436)
= Exp(3.3282)
= $27.89

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 29.25% per annum.
  • PRLB price at the close of July 26, 2024 was higher than the top border of the secondary price channel by $1.77 (5.33%). This indicates a possible reversal in the secondary trend direction.