Sotera Health Co (SHC)
Sotera Health Company provides sterilization, laboratory testing, and advisory services to the medical device, pharmaceutical, and food industries in the Americas, Europe, and Asia. The company is headquartered in Broadview Heights, Ohio.
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 783.11% per annum.
- SHC price at the close of May 14, 2024 was $11.40 and was lower than the bottom border of the primary price channel by $133.67 (92.14%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 23.15% per annum.
- SHC price at the close of May 14, 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 SHC 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, 2022
End date: April 24, 2023
a = -2.2094
b = 0.0060
s = 0.1993
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0060) – 1
= 783.11%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1993) – 1
= 121.90%
September 19, 2022 calculations
Top border of price channel:
Exp(Y458)
= Exp(a + b × X458 + 2 × s)
= Exp(a + b × 668 + 2 × s)
= Exp(-2.2094 + 0.0060 × 668 + 2 × 0.1993)
= Exp(2.1756)
= $8.81
Bottom border of price channel:
Exp(Y458)
= Exp(a + b × X458 – 2 × s)
= Exp(a + b × 668 – 2 × s)
= Exp(-2.2094 + 0.0060 × 668 – 2 × 0.1993)
= Exp(1.3786)
= $3.97
April 24, 2023 calculations
Top border of price channel:
Exp(Y607)
= Exp(a + b × X607 + 2 × s)
= Exp(a + b × 885 + 2 × s)
= Exp(-2.2094 + 0.0060 × 885 + 2 × 0.1993)
= Exp(3.4707)
= $32.16
Bottom border of price channel:
Exp(Y607)
= Exp(a + b × X607 – 2 × s)
= Exp(a + b × 885 – 2 × s)
= Exp(-2.2094 + 0.0060 × 885 – 2 × 0.1993)
= Exp(2.6736)
= $14.49
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 783.11% per annum.
- SHC price at the close of May 14, 2024 was $11.40 and was lower than the bottom border of the primary price channel by $133.67 (92.14%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: January 10, 2023
End date: May 14, 2024
a = 3.4634
b = -0.0007
s = 0.1040
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0007) – 1
= -23.15%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1040) – 1
= 51.60%
January 10, 2023 calculations
Top border of price channel:
Exp(Y536)
= Exp(a + b × X536 + 2 × s)
= Exp(a + b × 781 + 2 × s)
= Exp(3.4634 + -0.0007 × 781 + 2 × 0.1040)
= Exp(3.1082)
= $22.38
Bottom border of price channel:
Exp(Y536)
= Exp(a + b × X536 – 2 × s)
= Exp(a + b × 781 – 2 × s)
= Exp(3.4634 + -0.0007 × 781 – 2 × 0.1040)
= Exp(2.6921)
= $14.76
May 14, 2024 calculations
Top border of price channel:
Exp(Y873)
= Exp(a + b × X873 + 2 × s)
= Exp(a + b × 1,271 + 2 × s)
= Exp(3.4634 + -0.0007 × 1,271 + 2 × 0.1040)
= Exp(2.7547)
= $15.72
Bottom border of price channel:
Exp(Y873)
= Exp(a + b × X873 – 2 × s)
= Exp(a + b × 1,271 – 2 × s)
= Exp(3.4634 + -0.0007 × 1,271 – 2 × 0.1040)
= Exp(2.3386)
= $10.37
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 23.15% per annum.
- SHC price at the close of May 14, 2024 was inside the secondary price channel.