Stock Price Trends

Raytheon Technologies Corp (RTX)

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.

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 78.96% per annum.
  • RTX price at the close of May 2, 2024 was $101.89 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 8.28% per annum.
  • RTX price at the close of May 2, 2024 was inside the secondary price channel.

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 RTX 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: September 19, 2023
End date: May 2, 2024

a = 1.7163

b = 0.0016

s = 0.0253

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0016) – 1
= 78.96%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0253) – 1
= 10.67%

September 19, 2023 calculations

Top border of price channel:

Exp(Y1,102)
= Exp(a + b × X1,102 + 2 × s)
= Exp(a + b × 1,600 + 2 × s)
= Exp(1.7163 + 0.0016 × 1,600 + 2 × 0.0253)
= Exp(4.3182)
= $75.05

Bottom border of price channel:

Exp(Y1,102)
= Exp(a + b × X1,102 – 2 × s)
= Exp(a + b × 1,600 – 2 × s)
= Exp(1.7163 + 0.0016 × 1,600 – 2 × 0.0253)
= Exp(4.2168)
= $67.82

May 2, 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(1.7163 + 0.0016 × 1,826 + 2 × 0.0253)
= Exp(4.6786)
= $107.62

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.7163 + 0.0016 × 1,826 – 2 × 0.0253)
= Exp(4.5772)
= $97.24

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 78.96% per annum.
  • RTX price at the close of May 2, 2024 was $101.89 and was inside the primary price channel.

Secondary Trend

Start date: April 5, 2024
End date: May 2, 2024

a = 4.2225

b = 0.0002

s = 0.0058

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 8.28%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0058) – 1
= 2.36%

April 5, 2024 calculations

Top border of price channel:

Exp(Y1,239)
= Exp(a + b × X1,239 + 2 × s)
= Exp(a + b × 1,799 + 2 × s)
= Exp(4.2225 + 0.0002 × 1,799 + 2 × 0.0058)
= Exp(4.6264)
= $102.14

Bottom border of price channel:

Exp(Y1,239)
= Exp(a + b × X1,239 – 2 × s)
= Exp(a + b × 1,799 – 2 × s)
= Exp(4.2225 + 0.0002 × 1,799 – 2 × 0.0058)
= Exp(4.6031)
= $99.79

May 2, 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(4.2225 + 0.0002 × 1,826 + 2 × 0.0058)
= Exp(4.6323)
= $102.75

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.2225 + 0.0002 × 1,826 – 2 × 0.0058)
= Exp(4.6090)
= $100.38

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 8.28% per annum.
  • RTX price at the close of May 2, 2024 was inside the secondary price channel.