Stock Price Trends

Supernus Pharmaceuticals Inc (SUPN)

Supernus Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of diseases of the central nervous system in the United States. The company is headquartered in Rockville, Maryland.

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 27.02% per annum.
  • SUPN price at the close of May 9, 2024 was $30.00 and was higher than the top border of the primary price channel by $1.44 (5.03%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 83.60% per annum.
  • SUPN price at the close of May 9, 2024 was lower than the bottom border of the secondary price channel by $1.31 (4.18%). 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 SUPN 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: October 25, 2022
End date: February 22, 2024

a = 4.7697

b = -0.0009

s = 0.0791

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -27.02%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0791) – 1
= 37.24%

October 25, 2022 calculations

Top border of price channel:

Exp(Y872)
= Exp(a + b × X872 + 2 × s)
= Exp(a + b × 1,264 + 2 × s)
= Exp(4.7697 + -0.0009 × 1,264 + 2 × 0.0791)
= Exp(3.8371)
= $46.39

Bottom border of price channel:

Exp(Y872)
= Exp(a + b × X872 – 2 × s)
= Exp(a + b × 1,264 – 2 × s)
= Exp(4.7697 + -0.0009 × 1,264 – 2 × 0.0791)
= Exp(3.5205)
= $33.80

February 22, 2024 calculations

Top border of price channel:

Exp(Y1,204)
= Exp(a + b × X1,204 + 2 × s)
= Exp(a + b × 1,749 + 2 × s)
= Exp(4.7697 + -0.0009 × 1,749 + 2 × 0.0791)
= Exp(3.4186)
= $30.53

Bottom border of price channel:

Exp(Y1,204)
= Exp(a + b × X1,204 – 2 × s)
= Exp(a + b × 1,749 – 2 × s)
= Exp(4.7697 + -0.0009 × 1,749 – 2 × 0.0791)
= Exp(3.1020)
= $22.24

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 27.02% per annum.
  • SUPN price at the close of May 9, 2024 was $30.00 and was higher than the top border of the primary price channel by $1.44 (5.03%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: October 12, 2023
End date: April 11, 2024

a = 0.5032

b = 0.0017

s = 0.0495

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0017) – 1
= 83.60%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0495) – 1
= 21.91%

October 12, 2023 calculations

Top border of price channel:

Exp(Y1,114)
= Exp(a + b × X1,114 + 2 × s)
= Exp(a + b × 1,616 + 2 × s)
= Exp(0.5032 + 0.0017 × 1,616 + 2 × 0.0495)
= Exp(3.2924)
= $26.91

Bottom border of price channel:

Exp(Y1,114)
= Exp(a + b × X1,114 – 2 × s)
= Exp(a + b × 1,616 – 2 × s)
= Exp(0.5032 + 0.0017 × 1,616 – 2 × 0.0495)
= Exp(3.0943)
= $22.07

April 11, 2024 calculations

Top border of price channel:

Exp(Y1,238)
= Exp(a + b × X1,238 + 2 × s)
= Exp(a + b × 1,798 + 2 × s)
= Exp(0.5032 + 0.0017 × 1,798 + 2 × 0.0495)
= Exp(3.5954)
= $36.43

Bottom border of price channel:

Exp(Y1,238)
= Exp(a + b × X1,238 – 2 × s)
= Exp(a + b × 1,798 – 2 × s)
= Exp(0.5032 + 0.0017 × 1,798 – 2 × 0.0495)
= Exp(3.3973)
= $29.88

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 83.60% per annum.
  • SUPN price at the close of May 9, 2024 was lower than the bottom border of the secondary price channel by $1.31 (4.18%). This indicates a possible reversal in the secondary trend direction.