Waste Management Inc (WM)
Waste Management, Inc. is an American waste management, comprehensive waste, and environmental services company in North America. Founded in 1968, the company is headquartered 800 Capitol in Houston, Texas.
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 76.65% per annum.
- WM price at the close of May 7, 2024 was $210.50 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 2.43% per annum.
- WM price at the close of May 7, 2024 was inside the secondary price channel.
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 WM 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 31, 2023
End date: April 29, 2024
a = 2.5487
b = 0.0016
s = 0.0258
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0016) – 1
= 76.65%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0258) – 1
= 10.86%
August 31, 2023 calculations
Top border of price channel:
Exp(Y1,087)
= Exp(a + b × X1,087 + 2 × s)
= Exp(a + b × 1,576 + 2 × s)
= Exp(2.5487 + 0.0016 × 1,576 + 2 × 0.0258)
= Exp(5.0572)
= $157.15
Bottom border of price channel:
Exp(Y1,087)
= Exp(a + b × X1,087 – 2 × s)
= Exp(a + b × 1,576 – 2 × s)
= Exp(2.5487 + 0.0016 × 1,576 – 2 × 0.0258)
= Exp(4.9541)
= $141.75
April 29, 2024 calculations
Top border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,818 + 2 × s)
= Exp(2.5487 + 0.0016 × 1,818 + 2 × 0.0258)
= Exp(5.4345)
= $229.17
Bottom border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,818 – 2 × s)
= Exp(2.5487 + 0.0016 × 1,818 – 2 × 0.0258)
= Exp(5.3314)
= $206.72
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 76.65% per annum.
- WM price at the close of May 7, 2024 was $210.50 and was inside the primary price channel.
Secondary Trend
Start date: February 22, 2024
End date: May 7, 2024
a = 5.2229
b = 0.0001
s = 0.0125
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 2.43%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0125) – 1
= 5.13%
February 22, 2024 calculations
Top border of price channel:
Exp(Y1,206)
= Exp(a + b × X1,206 + 2 × s)
= Exp(a + b × 1,751 + 2 × s)
= Exp(5.2229 + 0.0001 × 1,751 + 2 × 0.0125)
= Exp(5.3631)
= $213.39
Bottom border of price channel:
Exp(Y1,206)
= Exp(a + b × X1,206 – 2 × s)
= Exp(a + b × 1,751 – 2 × s)
= Exp(5.2229 + 0.0001 × 1,751 – 2 × 0.0125)
= Exp(5.3131)
= $202.98
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(5.2229 + 0.0001 × 1,826 + 2 × 0.0125)
= Exp(5.3681)
= $214.44
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.2229 + 0.0001 × 1,826 – 2 × 0.0125)
= Exp(5.3180)
= $203.99
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 2.43% per annum.
- WM price at the close of May 7, 2024 was inside the secondary price channel.