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 decreasing.
- The decline rate of the primary trend is 15.07% per annum.
- RMD price at the close of May 8, 2024 was $212.88 and was higher than the top border of the primary price channel by $9.04 (4.43%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 83.53% per annum.
- RMD price at the close of May 8, 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 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 17, 2021
End date: April 25, 2024
a = 5.9287
b = -0.0004
s = 0.1028
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -15.07%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1028) – 1
= 50.89%
June 17, 2021 calculations
Top border of price channel:
Exp(Y531)
= Exp(a + b × X531 + 2 × s)
= Exp(a + b × 770 + 2 × s)
= Exp(5.9287 + -0.0004 × 770 + 2 × 0.1028)
= Exp(5.7898)
= $326.96
Bottom border of price channel:
Exp(Y531)
= Exp(a + b × X531 – 2 × s)
= Exp(a + b × 770 – 2 × s)
= Exp(5.9287 + -0.0004 × 770 – 2 × 0.1028)
= Exp(5.3785)
= $216.69
April 25, 2024 calculations
Top border of price channel:
Exp(Y1,249)
= Exp(a + b × X1,249 + 2 × s)
= Exp(a + b × 1,813 + 2 × s)
= Exp(5.9287 + -0.0004 × 1,813 + 2 × 0.1028)
= Exp(5.3232)
= $205.03
Bottom border of price channel:
Exp(Y1,249)
= Exp(a + b × X1,249 – 2 × s)
= Exp(a + b × 1,813 – 2 × s)
= Exp(5.9287 + -0.0004 × 1,813 – 2 × 0.1028)
= Exp(4.9118)
= $135.88
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 15.07% per annum.
- RMD price at the close of May 8, 2024 was $212.88 and was higher than the top border of the primary price channel by $9.04 (4.43%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: September 12, 2023
End date: May 8, 2024
a = 2.2898
b = 0.0017
s = 0.0473
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0017) – 1
= 83.53%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0473) – 1
= 20.81%
September 12, 2023 calculations
Top border of price channel:
Exp(Y1,093)
= Exp(a + b × X1,093 + 2 × s)
= Exp(a + b × 1,587 + 2 × s)
= Exp(2.2898 + 0.0017 × 1,587 + 2 × 0.0473)
= Exp(5.0243)
= $152.07
Bottom border of price channel:
Exp(Y1,093)
= Exp(a + b × X1,093 – 2 × s)
= Exp(a + b × 1,587 – 2 × s)
= Exp(2.2898 + 0.0017 × 1,587 – 2 × 0.0473)
= Exp(4.8353)
= $125.88
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(2.2898 + 0.0017 × 1,826 + 2 × 0.0473)
= Exp(5.4219)
= $226.31
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.2898 + 0.0017 × 1,826 – 2 × 0.0473)
= Exp(5.2329)
= $187.33
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 83.53% per annum.
- RMD price at the close of May 8, 2024 was inside the secondary price channel.