Stock Price Trends

Shutterstock (SSTK)

Shutterstock, Inc., a technology company, provides content, tools, and services in North America, Europe, and internationally. 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 decreasing.
  • The decline rate of the primary trend is 26.68% per annum.
  • SSTK price at the close of May 7, 2024 was $39.30 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 24.32% per annum.
  • SSTK price at the close of May 7, 2024 was lower than the bottom border of the secondary price channel by $0.24 (0.62%). This indicates a possible reversal in the secondary trend direction.
  • 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 SSTK 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: February 17, 2021
End date: May 7, 2024

a = 5.2118

b = -0.0009

s = 0.1816

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -26.68%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1816) – 1
= 106.77%

February 17, 2021 calculations

Top border of price channel:

Exp(Y448)
= Exp(a + b × X448 + 2 × s)
= Exp(a + b × 651 + 2 × s)
= Exp(5.2118 + -0.0009 × 651 + 2 × 0.1816)
= Exp(5.0215)
= $151.64

Bottom border of price channel:

Exp(Y448)
= Exp(a + b × X448 – 2 × s)
= Exp(a + b × 651 – 2 × s)
= Exp(5.2118 + -0.0009 × 651 – 2 × 0.1816)
= Exp(4.2951)
= $73.34

May 7, 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(5.2118 + -0.0009 × 1,826 + 2 × 0.1816)
= Exp(4.0224)
= $55.83

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.2118 + -0.0009 × 1,826 – 2 × 0.1816)
= Exp(3.2959)
= $27.00

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 26.68% per annum.
  • SSTK price at the close of May 7, 2024 was $39.30 and was inside the primary price channel.

Secondary Trend

Start date: August 2, 2023
End date: May 7, 2024

a = 2.7586

b = 0.0006

s = 0.0851

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 24.32%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0851) – 1
= 40.57%

August 2, 2023 calculations

Top border of price channel:

Exp(Y1,066)
= Exp(a + b × X1,066 + 2 × s)
= Exp(a + b × 1,547 + 2 × s)
= Exp(2.7586 + 0.0006 × 1,547 + 2 × 0.0851)
= Exp(3.8516)
= $47.07

Bottom border of price channel:

Exp(Y1,066)
= Exp(a + b × X1,066 – 2 × s)
= Exp(a + b × 1,547 – 2 × s)
= Exp(2.7586 + 0.0006 × 1,547 – 2 × 0.0851)
= Exp(3.5110)
= $33.48

May 7, 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(2.7586 + 0.0006 × 1,826 + 2 × 0.0851)
= Exp(4.0180)
= $55.59

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.7586 + 0.0006 × 1,826 – 2 × 0.0851)
= Exp(3.6774)
= $39.54

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 24.32% per annum.
  • SSTK price at the close of May 7, 2024 was lower than the bottom border of the secondary price channel by $0.24 (0.62%). This indicates a possible reversal in the secondary trend direction.