Stock Price Trends

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 increasing.
  • The growth rate of the primary trend is 290.00% per annum.
  • TNDM price at the close of July 25, 2024 was $40.65 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 63.82% per annum.
  • TNDM 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 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: October 4, 2023
End date: July 24, 2024

a = -2.8798

b = 0.0037

s = 0.1329

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0037) – 1
= 290.00%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1329) – 1
= 70.13%

October 4, 2023 calculations

Top border of price channel:

Exp(Y1,055)
= Exp(a + b × X1,055 + 2 × s)
= Exp(a + b × 1,531 + 2 × s)
= Exp(-2.8798 + 0.0037 × 1,531 + 2 × 0.1329)
= Exp(3.0945)
= $22.08

Bottom border of price channel:

Exp(Y1,055)
= Exp(a + b × X1,055 – 2 × s)
= Exp(a + b × 1,531 – 2 × s)
= Exp(-2.8798 + 0.0037 × 1,531 – 2 × 0.1329)
= Exp(2.5631)
= $12.98

July 24, 2024 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(-2.8798 + 0.0037 × 1,825 + 2 × 0.1329)
= Exp(4.1908)
= $66.07

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(-2.8798 + 0.0037 × 1,825 – 2 × 0.1329)
= Exp(3.6594)
= $38.84

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 290.00% per annum.
  • TNDM price at the close of July 25, 2024 was $40.65 and was inside the primary price channel.

Secondary Trend

Start date: May 15, 2024
End date: July 25, 2024

a = 8.8057

b = -0.0028

s = 0.0703

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0028) – 1
= -63.82%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0703) – 1
= 32.46%

May 15, 2024 calculations

Top border of price channel:

Exp(Y1,209)
= Exp(a + b × X1,209 + 2 × s)
= Exp(a + b × 1,755 + 2 × s)
= Exp(8.8057 + -0.0028 × 1,755 + 2 × 0.0703)
= Exp(4.0579)
= $57.85

Bottom border of price channel:

Exp(Y1,209)
= Exp(a + b × X1,209 – 2 × s)
= Exp(a + b × 1,755 – 2 × s)
= Exp(8.8057 + -0.0028 × 1,755 – 2 × 0.0703)
= Exp(3.7767)
= $43.67

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(8.8057 + -0.0028 × 1,826 + 2 × 0.0703)
= Exp(3.8601)
= $47.47

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(8.8057 + -0.0028 × 1,826 – 2 × 0.0703)
= Exp(3.5790)
= $35.84

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 63.82% per annum.
  • TNDM price at the close of July 25, 2024 was inside the secondary price channel.