Stewart Information Services Corp (STC)
Stewart Information Services Corporation offers title insurance and real estate transaction services. The company is headquartered in Houston, Texas.
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 58.80% per annum.
- STC price at the close of July 25, 2024 was $72.33 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 24.96% per annum.
- STC price at the close of July 25, 2024 was higher than the top border of the secondary price channel by $1.74 (2.47%).
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 STC 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: March 2, 2023
End date: July 25, 2024
a = 1.9138
b = 0.0013
s = 0.0707
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 58.80%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0707) – 1
= 32.68%
March 2, 2023 calculations
Top border of price channel:
Exp(Y906)
= Exp(a + b × X906 + 2 × s)
= Exp(a + b × 1,315 + 2 × s)
= Exp(1.9138 + 0.0013 × 1,315 + 2 × 0.0707)
= Exp(3.7213)
= $41.32
Bottom border of price channel:
Exp(Y906)
= Exp(a + b × X906 – 2 × s)
= Exp(a + b × 1,315 – 2 × s)
= Exp(1.9138 + 0.0013 × 1,315 – 2 × 0.0707)
= Exp(3.4385)
= $31.14
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(1.9138 + 0.0013 × 1,826 + 2 × 0.0707)
= Exp(4.3687)
= $78.94
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.9138 + 0.0013 × 1,826 – 2 × 0.0707)
= Exp(4.0859)
= $59.50
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 58.80% per annum.
- STC price at the close of July 25, 2024 was $72.33 and was inside the primary price channel.
Secondary Trend
Start date: December 14, 2023
End date: July 25, 2024
a = 3.0703
b = 0.0006
s = 0.0359
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 24.96%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0359) – 1
= 15.43%
December 14, 2023 calculations
Top border of price channel:
Exp(Y1,105)
= Exp(a + b × X1,105 + 2 × s)
= Exp(a + b × 1,602 + 2 × s)
= Exp(3.0703 + 0.0006 × 1,602 + 2 × 0.0359)
= Exp(4.1201)
= $61.56
Bottom border of price channel:
Exp(Y1,105)
= Exp(a + b × X1,105 – 2 × s)
= Exp(a + b × 1,602 – 2 × s)
= Exp(3.0703 + 0.0006 × 1,602 – 2 × 0.0359)
= Exp(3.9766)
= $53.34
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(3.0703 + 0.0006 × 1,826 + 2 × 0.0359)
= Exp(4.2568)
= $70.59
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.0703 + 0.0006 × 1,826 – 2 × 0.0359)
= Exp(4.1134)
= $61.15
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 24.96% per annum.
- STC price at the close of July 25, 2024 was higher than the top border of the secondary price channel by $1.74 (2.47%).