Stock Price Trends

Semtech Corporation (SMTC)

Semtech Corporation designs, develops, manufactures, and markets mixed-signal and analog semiconductor products and advanced algorithms. The company is headquartered in Camarillo, California.

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 421.21% per annum.
  • SMTC price at the close of July 25, 2024 was $28.91 and was lower than the bottom border of the primary price channel by $9.88 (25.47%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 64.54% per annum.
  • SMTC price at the close of July 25, 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 SMTC 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: October 19, 2023
End date: June 6, 2024

a = -4.3665

b = 0.0045

s = 0.1173

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0045) – 1
= 421.21%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1173) – 1
= 59.89%

October 19, 2023 calculations

Top border of price channel:

Exp(Y1,066)
= Exp(a + b × X1,066 + 2 × s)
= Exp(a + b × 1,546 + 2 × s)
= Exp(-4.3665 + 0.0045 × 1,546 + 2 × 0.1173)
= Exp(2.8610)
= $17.48

Bottom border of price channel:

Exp(Y1,066)
= Exp(a + b × X1,066 – 2 × s)
= Exp(a + b × 1,546 – 2 × s)
= Exp(-4.3665 + 0.0045 × 1,546 – 2 × 0.1173)
= Exp(2.3917)
= $10.93

June 6, 2024 calculations

Top border of price channel:

Exp(Y1,224)
= Exp(a + b × X1,224 + 2 × s)
= Exp(a + b × 1,777 + 2 × s)
= Exp(-4.3665 + 0.0045 × 1,777 + 2 × 0.1173)
= Exp(3.9059)
= $49.69

Bottom border of price channel:

Exp(Y1,224)
= Exp(a + b × X1,224 – 2 × s)
= Exp(a + b × 1,777 – 2 × s)
= Exp(-4.3665 + 0.0045 × 1,777 – 2 × 0.1173)
= Exp(3.4366)
= $31.08

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 421.21% per annum.
  • SMTC price at the close of July 25, 2024 was $28.91 and was lower than the bottom border of the primary price channel by $9.88 (25.47%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: April 26, 2024
End date: July 25, 2024

a = 8.6166

b = -0.0028

s = 0.0904

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0028) – 1
= -64.54%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0904) – 1
= 43.55%

April 26, 2024 calculations

Top border of price channel:

Exp(Y1,196)
= Exp(a + b × X1,196 + 2 × s)
= Exp(a + b × 1,736 + 2 × s)
= Exp(8.6166 + -0.0028 × 1,736 + 2 × 0.0904)
= Exp(3.8660)
= $47.75

Bottom border of price channel:

Exp(Y1,196)
= Exp(a + b × X1,196 – 2 × s)
= Exp(a + b × 1,736 – 2 × s)
= Exp(8.6166 + -0.0028 × 1,736 – 2 × 0.0904)
= Exp(3.5045)
= $33.27

July 25, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(8.6166 + -0.0028 × 1,826 + 2 × 0.0904)
= Exp(3.6104)
= $36.98

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(8.6166 + -0.0028 × 1,826 – 2 × 0.0904)
= Exp(3.2488)
= $25.76

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 64.54% per annum.
  • SMTC price at the close of July 25, 2024 was inside the secondary price channel.