Stock Price Trends

Southwest Gas Holdings Inc (SWX)

Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.

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 61.72% per annum.
  • SWX price at the close of July 25, 2024 was $74.66 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 7.56% per annum.
  • SWX 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 SWX 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: September 28, 2023
End date: June 26, 2024

a = 1.9903

b = 0.0013

s = 0.0499

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 61.72%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0499) – 1
= 22.10%

September 28, 2023 calculations

Top border of price channel:

Exp(Y1,051)
= Exp(a + b × X1,051 + 2 × s)
= Exp(a + b × 1,525 + 2 × s)
= Exp(1.9903 + 0.0013 × 1,525 + 2 × 0.0499)
= Exp(4.0984)
= $60.25

Bottom border of price channel:

Exp(Y1,051)
= Exp(a + b × X1,051 – 2 × s)
= Exp(a + b × 1,525 – 2 × s)
= Exp(1.9903 + 0.0013 × 1,525 – 2 × 0.0499)
= Exp(3.8988)
= $49.34

June 26, 2024 calculations

Top border of price channel:

Exp(Y1,237)
= Exp(a + b × X1,237 + 2 × s)
= Exp(a + b × 1,797 + 2 × s)
= Exp(1.9903 + 0.0013 × 1,797 + 2 × 0.0499)
= Exp(4.4567)
= $86.20

Bottom border of price channel:

Exp(Y1,237)
= Exp(a + b × X1,237 – 2 × s)
= Exp(a + b × 1,797 – 2 × s)
= Exp(1.9903 + 0.0013 × 1,797 – 2 × 0.0499)
= Exp(4.2570)
= $70.60

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 61.72% per annum.
  • SWX price at the close of July 25, 2024 was $74.66 and was inside the primary price channel.

Secondary Trend

Start date: March 27, 2024
End date: July 25, 2024

a = 4.6860

b = -0.0002

s = 0.0246

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -7.56%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0246) – 1
= 10.35%

March 27, 2024 calculations

Top border of price channel:

Exp(Y1,175)
= Exp(a + b × X1,175 + 2 × s)
= Exp(a + b × 1,706 + 2 × s)
= Exp(4.6860 + -0.0002 × 1,706 + 2 × 0.0246)
= Exp(4.3676)
= $78.86

Bottom border of price channel:

Exp(Y1,175)
= Exp(a + b × X1,175 – 2 × s)
= Exp(a + b × 1,706 – 2 × s)
= Exp(4.6860 + -0.0002 × 1,706 – 2 × 0.0246)
= Exp(4.2691)
= $71.46

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(4.6860 + -0.0002 × 1,826 + 2 × 0.0246)
= Exp(4.3418)
= $76.84

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.6860 + -0.0002 × 1,826 – 2 × 0.0246)
= Exp(4.2433)
= $69.63

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 7.56% per annum.
  • SWX price at the close of July 25, 2024 was inside the secondary price channel.