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 decreasing.
  • The decline rate of the primary trend is 52.53% per annum.
  • SMTC price at the close of May 6, 2024 was $39.71 and was higher than the top border of the primary price channel by $21.81 (121.83%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 354.69% per annum.
  • SMTC price at the close of May 6, 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: August 10, 2021
End date: December 12, 2023

a = 6.2373

b = -0.0020

s = 0.1876

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0020) – 1
= -52.53%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1876) – 1
= 111.76%

August 10, 2021 calculations

Top border of price channel:

Exp(Y570)
= Exp(a + b × X570 + 2 × s)
= Exp(a + b × 826 + 2 × s)
= Exp(6.2373 + -0.0020 × 826 + 2 × 0.1876)
= Exp(4.9263)
= $137.87

Bottom border of price channel:

Exp(Y570)
= Exp(a + b × X570 – 2 × s)
= Exp(a + b × 826 – 2 × s)
= Exp(6.2373 + -0.0020 × 826 – 2 × 0.1876)
= Exp(4.1760)
= $65.10

December 12, 2023 calculations

Top border of price channel:

Exp(Y1,159)
= Exp(a + b × X1,159 + 2 × s)
= Exp(a + b × 1,680 + 2 × s)
= Exp(6.2373 + -0.0020 × 1,680 + 2 × 0.1876)
= Exp(3.1829)
= $24.12

Bottom border of price channel:

Exp(Y1,159)
= Exp(a + b × X1,159 – 2 × s)
= Exp(a + b × 1,680 – 2 × s)
= Exp(6.2373 + -0.0020 × 1,680 – 2 × 0.1876)
= Exp(2.4326)
= $11.39

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 52.53% per annum.
  • SMTC price at the close of May 6, 2024 was $39.71 and was higher than the top border of the primary price channel by $21.81 (121.83%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: October 19, 2023
End date: May 6, 2024

a = -4.0944

b = 0.0041

s = 0.1182

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0041) – 1
= 354.69%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1182) – 1
= 60.44%

October 19, 2023 calculations

Top border of price channel:

Exp(Y1,122)
= Exp(a + b × X1,122 + 2 × s)
= Exp(a + b × 1,626 + 2 × s)
= Exp(-4.0944 + 0.0041 × 1,626 + 2 × 0.1182)
= Exp(2.8885)
= $17.97

Bottom border of price channel:

Exp(Y1,122)
= Exp(a + b × X1,122 – 2 × s)
= Exp(a + b × 1,626 – 2 × s)
= Exp(-4.0944 + 0.0041 × 1,626 – 2 × 0.1182)
= Exp(2.4157)
= $11.20

May 6, 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(-4.0944 + 0.0041 × 1,826 + 2 × 0.1182)
= Exp(3.7183)
= $41.19

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-4.0944 + 0.0041 × 1,826 – 2 × 0.1182)
= Exp(3.2455)
= $25.68

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 354.69% per annum.
  • SMTC price at the close of May 6, 2024 was inside the secondary price channel.