Stock Price Trends

Schrodinger Inc (SDGR)

Schrdinger, Inc. provides a physics-based software platform that enables the discovery of novel molecules for drug development and material applications. The company is headquartered in New York, New York.

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 6.05% per annum.
  • SDGR price at the close of May 13, 2024 was $23.18 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 47.25% per annum.
  • SDGR price at the close of May 13, 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 SDGR 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: January 5, 2022
End date: April 15, 2024

a = 3.1647

b = 0.0002

s = 0.2198

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 6.05%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.2198) – 1
= 140.87%

January 5, 2022 calculations

Top border of price channel:

Exp(Y483)
= Exp(a + b × X483 + 2 × s)
= Exp(a + b × 699 + 2 × s)
= Exp(3.1647 + 0.0002 × 699 + 2 × 0.2198)
= Exp(3.7167)
= $41.13

Bottom border of price channel:

Exp(Y483)
= Exp(a + b × X483 – 2 × s)
= Exp(a + b × 699 – 2 × s)
= Exp(3.1647 + 0.0002 × 699 – 2 × 0.2198)
= Exp(2.8376)
= $17.08

April 15, 2024 calculations

Top border of price channel:

Exp(Y1,053)
= Exp(a + b × X1,053 + 2 × s)
= Exp(a + b × 1,530 + 2 × s)
= Exp(3.1647 + 0.0002 × 1,530 + 2 × 0.2198)
= Exp(3.8504)
= $47.01

Bottom border of price channel:

Exp(Y1,053)
= Exp(a + b × X1,053 – 2 × s)
= Exp(a + b × 1,530 – 2 × s)
= Exp(3.1647 + 0.0002 × 1,530 – 2 × 0.2198)
= Exp(2.9713)
= $19.52

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 6.05% per annum.
  • SDGR price at the close of May 13, 2024 was $23.18 and was inside the primary price channel.

Secondary Trend

Start date: June 5, 2023
End date: May 13, 2024

a = 5.8734

b = -0.0018

s = 0.1583

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0018) – 1
= -47.25%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1583) – 1
= 88.38%

June 5, 2023 calculations

Top border of price channel:

Exp(Y837)
= Exp(a + b × X837 + 2 × s)
= Exp(a + b × 1,215 + 2 × s)
= Exp(5.8734 + -0.0018 × 1,215 + 2 × 0.1583)
= Exp(4.0611)
= $58.04

Bottom border of price channel:

Exp(Y837)
= Exp(a + b × X837 – 2 × s)
= Exp(a + b × 1,215 – 2 × s)
= Exp(5.8734 + -0.0018 × 1,215 – 2 × 0.1583)
= Exp(3.4278)
= $30.81

May 13, 2024 calculations

Top border of price channel:

Exp(Y1,073)
= Exp(a + b × X1,073 + 2 × s)
= Exp(a + b × 1,558 + 2 × s)
= Exp(5.8734 + -0.0018 × 1,558 + 2 × 0.1583)
= Exp(3.4601)
= $31.82

Bottom border of price channel:

Exp(Y1,073)
= Exp(a + b × X1,073 – 2 × s)
= Exp(a + b × 1,558 – 2 × s)
= Exp(5.8734 + -0.0018 × 1,558 – 2 × 0.1583)
= Exp(2.8268)
= $16.89

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 47.25% per annum.
  • SDGR price at the close of May 13, 2024 was inside the secondary price channel.