ResMed Inc (RMD)
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
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 168.31% per annum.
- RMD price at the close of July 26, 2024 was $197.04 and was lower than the bottom border of the primary price channel by $4,666.25 (95.95%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 15.00% per annum.
- RMD price at the close of July 26, 2024 was higher than the top border of the secondary price channel by $0.03 (0.01%). 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 RMD 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: June 15, 2021
End date: September 10, 2021
a = 3.5798
b = 0.0027
s = 0.0112
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0027) – 1
= 168.31%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0112) – 1
= 4.58%
June 15, 2021 calculations
Top border of price channel:
Exp(Y474)
= Exp(a + b × X474 + 2 × s)
= Exp(a + b × 687 + 2 × s)
= Exp(3.5798 + 0.0027 × 687 + 2 × 0.0112)
= Exp(5.4598)
= $235.05
Bottom border of price channel:
Exp(Y474)
= Exp(a + b × X474 – 2 × s)
= Exp(a + b × 687 – 2 × s)
= Exp(3.5798 + 0.0027 × 687 – 2 × 0.0112)
= Exp(5.4150)
= $224.76
September 10, 2021 calculations
Top border of price channel:
Exp(Y535)
= Exp(a + b × X535 + 2 × s)
= Exp(a + b × 774 + 2 × s)
= Exp(3.5798 + 0.0027 × 774 + 2 × 0.0112)
= Exp(5.6950)
= $297.39
Bottom border of price channel:
Exp(Y535)
= Exp(a + b × X535 – 2 × s)
= Exp(a + b × 774 – 2 × s)
= Exp(3.5798 + 0.0027 × 774 – 2 × 0.0112)
= Exp(5.6503)
= $284.37
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 168.31% per annum.
- RMD price at the close of July 26, 2024 was $197.04 and was lower than the bottom border of the primary price channel by $4,666.25 (95.95%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: June 15, 2021
End date: April 25, 2024
a = 5.8893
b = -0.0004
s = 0.1030
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -15.00%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1030) – 1
= 50.97%
June 15, 2021 calculations
Top border of price channel:
Exp(Y474)
= Exp(a + b × X474 + 2 × s)
= Exp(a + b × 687 + 2 × s)
= Exp(5.8893 + -0.0004 × 687 + 2 × 0.1030)
= Exp(5.7894)
= $326.82
Bottom border of price channel:
Exp(Y474)
= Exp(a + b × X474 – 2 × s)
= Exp(a + b × 687 – 2 × s)
= Exp(5.8893 + -0.0004 × 687 – 2 × 0.1030)
= Exp(5.3775)
= $216.48
April 25, 2024 calculations
Top border of price channel:
Exp(Y1,194)
= Exp(a + b × X1,194 + 2 × s)
= Exp(a + b × 1,732 + 2 × s)
= Exp(5.8893 + -0.0004 × 1,732 + 2 × 0.1030)
= Exp(5.3242)
= $205.25
Bottom border of price channel:
Exp(Y1,194)
= Exp(a + b × X1,194 – 2 × s)
= Exp(a + b × 1,732 – 2 × s)
= Exp(5.8893 + -0.0004 × 1,732 – 2 × 0.1030)
= Exp(4.9123)
= $135.96
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 15.00% per annum.
- RMD price at the close of July 26, 2024 was higher than the top border of the secondary price channel by $0.03 (0.01%). This indicates a possible reversal in the secondary trend direction.