Visa Inc. Class A (V)
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.
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 24.81% per annum.
- V price at the close of July 25, 2024 was $253.74 and was lower than the bottom border of the primary price channel by $19.01 (6.97%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 11.71% per annum.
- V price at the close of July 25, 2024 was lower than the bottom border of the secondary price channel by $5.76 (2.22%).
- 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 V 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: August 26, 2022
End date: June 11, 2024
a = 4.5746
b = 0.0006
s = 0.0373
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 24.81%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0373) – 1
= 16.10%
August 26, 2022 calculations
Top border of price channel:
Exp(Y778)
= Exp(a + b × X778 + 2 × s)
= Exp(a + b × 1,127 + 2 × s)
= Exp(4.5746 + 0.0006 × 1,127 + 2 × 0.0373)
= Exp(5.3335)
= $207.15
Bottom border of price channel:
Exp(Y778)
= Exp(a + b × X778 – 2 × s)
= Exp(a + b × 1,127 – 2 × s)
= Exp(4.5746 + 0.0006 × 1,127 – 2 × 0.0373)
= Exp(5.1842)
= $178.43
June 11, 2024 calculations
Top border of price channel:
Exp(Y1,227)
= Exp(a + b × X1,227 + 2 × s)
= Exp(a + b × 1,782 + 2 × s)
= Exp(4.5746 + 0.0006 × 1,782 + 2 × 0.0373)
= Exp(5.7311)
= $308.31
Bottom border of price channel:
Exp(Y1,227)
= Exp(a + b × X1,227 – 2 × s)
= Exp(a + b × 1,782 – 2 × s)
= Exp(4.5746 + 0.0006 × 1,782 – 2 × 0.0373)
= Exp(5.5818)
= $265.56
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 24.81% per annum.
- V price at the close of July 25, 2024 was $253.74 and was lower than the bottom border of the primary price channel by $19.01 (6.97%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: February 14, 2024
End date: July 23, 2024
a = 6.2115
b = -0.0003
s = 0.0149
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -11.71%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0149) – 1
= 6.15%
February 14, 2024 calculations
Top border of price channel:
Exp(Y1,146)
= Exp(a + b × X1,146 + 2 × s)
= Exp(a + b × 1,664 + 2 × s)
= Exp(6.2115 + -0.0003 × 1,664 + 2 × 0.0149)
= Exp(5.6737)
= $291.10
Bottom border of price channel:
Exp(Y1,146)
= Exp(a + b × X1,146 – 2 × s)
= Exp(a + b × 1,664 – 2 × s)
= Exp(6.2115 + -0.0003 × 1,664 – 2 × 0.0149)
= Exp(5.6140)
= $274.24
July 23, 2024 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(6.2115 + -0.0003 × 1,824 + 2 × 0.0149)
= Exp(5.6191)
= $275.63
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(6.2115 + -0.0003 × 1,824 – 2 × 0.0149)
= Exp(5.5594)
= $259.67
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 11.71% per annum.
- V price at the close of July 25, 2024 was lower than the bottom border of the secondary price channel by $5.76 (2.22%).