Tandem Diabetes Care Inc (TNDM)
Tandem Diabetes Care, Inc., a medical device company, designs, develops, and markets various products for people with insulin-dependent diabetes in the United States. The company is headquartered in San Diego, California.
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 59.16% per annum.
- TNDM price at the close of May 8, 2024 was $42.15 and was higher than the top border of the primary price channel by $23.62 (127.50%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 267.06% per annum.
- TNDM price at the close of May 8, 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 TNDM 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: July 22, 2021
End date: December 12, 2023
a = 7.0473
b = -0.0025
s = 0.1758
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0025) – 1
= -59.16%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1758) – 1
= 102.00%
July 22, 2021 calculations
Top border of price channel:
Exp(Y555)
= Exp(a + b × X555 + 2 × s)
= Exp(a + b × 805 + 2 × s)
= Exp(7.0473 + -0.0025 × 805 + 2 × 0.1758)
= Exp(5.4240)
= $226.78
Bottom border of price channel:
Exp(Y555)
= Exp(a + b × X555 – 2 × s)
= Exp(a + b × 805 – 2 × s)
= Exp(7.0473 + -0.0025 × 805 – 2 × 0.1758)
= Exp(4.7209)
= $112.27
December 12, 2023 calculations
Top border of price channel:
Exp(Y1,157)
= Exp(a + b × X1,157 + 2 × s)
= Exp(a + b × 1,678 + 2 × s)
= Exp(7.0473 + -0.0025 × 1,678 + 2 × 0.1758)
= Exp(3.2823)
= $26.64
Bottom border of price channel:
Exp(Y1,157)
= Exp(a + b × X1,157 – 2 × s)
= Exp(a + b × 1,678 – 2 × s)
= Exp(7.0473 + -0.0025 × 1,678 – 2 × 0.1758)
= Exp(2.5793)
= $13.19
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 59.16% per annum.
- TNDM price at the close of May 8, 2024 was $42.15 and was higher than the top border of the primary price channel by $23.62 (127.50%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: October 4, 2023
End date: May 8, 2024
a = -2.8968
b = 0.0036
s = 0.1240
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0036) – 1
= 267.06%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1240) – 1
= 64.22%
October 4, 2023 calculations
Top border of price channel:
Exp(Y1,109)
= Exp(a + b × X1,109 + 2 × s)
= Exp(a + b × 1,609 + 2 × s)
= Exp(-2.8968 + 0.0036 × 1,609 + 2 × 0.1240)
= Exp(3.0834)
= $21.83
Bottom border of price channel:
Exp(Y1,109)
= Exp(a + b × X1,109 – 2 × s)
= Exp(a + b × 1,609 – 2 × s)
= Exp(-2.8968 + 0.0036 × 1,609 – 2 × 0.1240)
= Exp(2.5874)
= $13.30
May 8, 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(-2.8968 + 0.0036 × 1,826 + 2 × 0.1240)
= Exp(3.8565)
= $47.30
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-2.8968 + 0.0036 × 1,826 – 2 × 0.1240)
= Exp(3.3605)
= $28.80
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 267.06% per annum.
- TNDM price at the close of May 8, 2024 was inside the secondary price channel.