Wex Inc (WEX)
WEX Inc. offers financial technology services in North America, Asia Pacific, and Europe. The company is headquartered in Portland, Maine.
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 16.63% per annum.
- WEX price at the close of May 7, 2024 was $211.66 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 96.36% per annum.
- WEX price at the close of May 7, 2024 was lower than the bottom border of the secondary price channel by $11.55 (5.18%). This indicates a possible reversal in the secondary trend direction.
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 WEX 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 29, 2021
End date: May 7, 2024
a = 4.5847
b = 0.0004
s = 0.0801
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.63%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0801) – 1
= 37.78%
October 29, 2021 calculations
Top border of price channel:
Exp(Y626)
= Exp(a + b × X626 + 2 × s)
= Exp(a + b × 905 + 2 × s)
= Exp(4.5847 + 0.0004 × 905 + 2 × 0.0801)
= Exp(5.1265)
= $168.42
Bottom border of price channel:
Exp(Y626)
= Exp(a + b × X626 – 2 × s)
= Exp(a + b × 905 – 2 × s)
= Exp(4.5847 + 0.0004 × 905 – 2 × 0.0801)
= Exp(4.8060)
= $122.24
May 7, 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(4.5847 + 0.0004 × 1,826 + 2 × 0.0801)
= Exp(5.5147)
= $248.33
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.5847 + 0.0004 × 1,826 – 2 × 0.0801)
= Exp(5.1943)
= $180.24
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 16.63% per annum.
- WEX price at the close of May 7, 2024 was $211.66 and was inside the primary price channel.
Secondary Trend
Start date: October 26, 2023
End date: May 7, 2024
a = 2.1219
b = 0.0018
s = 0.0447
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 96.36%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0447) – 1
= 19.59%
October 26, 2023 calculations
Top border of price channel:
Exp(Y1,126)
= Exp(a + b × X1,126 + 2 × s)
= Exp(a + b × 1,632 + 2 × s)
= Exp(2.1219 + 0.0018 × 1,632 + 2 × 0.0447)
= Exp(5.2284)
= $186.49
Bottom border of price channel:
Exp(Y1,126)
= Exp(a + b × X1,126 – 2 × s)
= Exp(a + b × 1,632 – 2 × s)
= Exp(2.1219 + 0.0018 × 1,632 – 2 × 0.0447)
= Exp(5.0495)
= $155.94
May 7, 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(2.1219 + 0.0018 × 1,826 + 2 × 0.0447)
= Exp(5.5870)
= $266.94
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.1219 + 0.0018 × 1,826 – 2 × 0.0447)
= Exp(5.4081)
= $223.21
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 96.36% per annum.
- WEX price at the close of May 7, 2024 was lower than the bottom border of the secondary price channel by $11.55 (5.18%). This indicates a possible reversal in the secondary trend direction.