STERIS plc (STE)
Steris Corporation is an American Irish-domiciled medical equipment company specializing in sterilization and surgical products for the US healthcare system.
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 6.56% per annum.
- STE price at the close of July 25, 2024 was $227.56 and was higher than the top border of the primary price channel by $18.92 (9.07%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 16.22% per annum.
- STE 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 STE 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: April 8, 2021
End date: June 12, 2023
a = 5.5022
b = -0.0002
s = 0.0889
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -6.56%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0889) – 1
= 42.70%
April 8, 2021 calculations
Top border of price channel:
Exp(Y428)
= Exp(a + b × X428 + 2 × s)
= Exp(a + b × 622 + 2 × s)
= Exp(5.5022 + -0.0002 × 622 + 2 × 0.0889)
= Exp(5.5644)
= $260.96
Bottom border of price channel:
Exp(Y428)
= Exp(a + b × X428 – 2 × s)
= Exp(a + b × 622 – 2 × s)
= Exp(5.5022 + -0.0002 × 622 – 2 × 0.0889)
= Exp(5.2088)
= $182.87
June 12, 2023 calculations
Top border of price channel:
Exp(Y976)
= Exp(a + b × X976 + 2 × s)
= Exp(a + b × 1,417 + 2 × s)
= Exp(5.5022 + -0.0002 × 1,417 + 2 × 0.0889)
= Exp(5.4166)
= $225.11
Bottom border of price channel:
Exp(Y976)
= Exp(a + b × X976 – 2 × s)
= Exp(a + b × 1,417 – 2 × s)
= Exp(5.5022 + -0.0002 × 1,417 – 2 × 0.0889)
= Exp(5.0610)
= $157.75
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 6.56% per annum.
- STE price at the close of July 25, 2024 was $227.56 and was higher than the top border of the primary price channel by $18.92 (9.07%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: September 16, 2022
End date: July 25, 2024
a = 4.7064
b = 0.0004
s = 0.0643
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.22%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0643) – 1
= 29.31%
September 16, 2022 calculations
Top border of price channel:
Exp(Y792)
= Exp(a + b × X792 + 2 × s)
= Exp(a + b × 1,148 + 2 × s)
= Exp(4.7064 + 0.0004 × 1,148 + 2 × 0.0643)
= Exp(5.3078)
= $201.91
Bottom border of price channel:
Exp(Y792)
= Exp(a + b × X792 – 2 × s)
= Exp(a + b × 1,148 – 2 × s)
= Exp(4.7064 + 0.0004 × 1,148 – 2 × 0.0643)
= Exp(5.0508)
= $156.14
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(4.7064 + 0.0004 × 1,826 + 2 × 0.0643)
= Exp(5.5871)
= $266.96
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.7064 + 0.0004 × 1,826 – 2 × 0.0643)
= Exp(5.3300)
= $206.44
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 16.22% per annum.
- STE price at the close of July 25, 2024 was inside the secondary price channel.