Stock Price Trends

SPS Commerce Inc (SPSC)

SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.

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 19.97% per annum.
  • SPSC price at the close of July 26, 2024 was $209.00 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 31.79% per annum.
  • SPSC price at the close of July 26, 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 SPSC 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: November 4, 2020
End date: July 26, 2024

a = 4.3551

b = 0.0005

s = 0.1150

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 19.97%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1150) – 1
= 58.39%

November 4, 2020 calculations

Top border of price channel:

Exp(Y322)
= Exp(a + b × X322 + 2 × s)
= Exp(a + b × 464 + 2 × s)
= Exp(4.3551 + 0.0005 × 464 + 2 × 0.1150)
= Exp(4.8165)
= $123.53

Bottom border of price channel:

Exp(Y322)
= Exp(a + b × X322 – 2 × s)
= Exp(a + b × 464 – 2 × s)
= Exp(4.3551 + 0.0005 × 464 – 2 × 0.1150)
= Exp(4.3566)
= $77.99

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.3551 + 0.0005 × 1,824 + 2 × 0.1150)
= Exp(5.4949)
= $243.45

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.3551 + 0.0005 × 1,824 – 2 × 0.1150)
= Exp(5.0350)
= $153.70

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 19.97% per annum.
  • SPSC price at the close of July 26, 2024 was $209.00 and was inside the primary price channel.

Secondary Trend

Start date: May 5, 2022
End date: July 26, 2024

a = 3.9641

b = 0.0008

s = 0.0728

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 31.79%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0728) – 1
= 33.82%

May 5, 2022 calculations

Top border of price channel:

Exp(Y699)
= Exp(a + b × X699 + 2 × s)
= Exp(a + b × 1,011 + 2 × s)
= Exp(3.9641 + 0.0008 × 1,011 + 2 × 0.0728)
= Exp(4.8745)
= $130.90

Bottom border of price channel:

Exp(Y699)
= Exp(a + b × X699 – 2 × s)
= Exp(a + b × 1,011 – 2 × s)
= Exp(3.9641 + 0.0008 × 1,011 – 2 × 0.0728)
= Exp(4.5831)
= $97.82

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(3.9641 + 0.0008 × 1,824 + 2 × 0.0728)
= Exp(5.4894)
= $242.10

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.9641 + 0.0008 × 1,824 – 2 × 0.0728)
= Exp(5.1980)
= $180.92

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 31.79% per annum.
  • SPSC price at the close of July 26, 2024 was inside the secondary price channel.