Essential Utilities Inc (WTRG)
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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 10.58% per annum.
- WTRG price at the close of July 26, 2024 was $40.71 and was higher than the top border of the primary price channel by $1.49 (3.80%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 20.09% per annum.
- WTRG price at the close of July 26, 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 WTRG 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 23, 2021
End date: May 3, 2024
a = 4.0970
b = -0.0003
s = 0.0656
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.58%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0656) – 1
= 30.00%
July 23, 2021 calculations
Top border of price channel:
Exp(Y501)
= Exp(a + b × X501 + 2 × s)
= Exp(a + b × 725 + 2 × s)
= Exp(4.0970 + -0.0003 × 725 + 2 × 0.0656)
= Exp(4.0060)
= $54.93
Bottom border of price channel:
Exp(Y501)
= Exp(a + b × X501 – 2 × s)
= Exp(a + b × 725 – 2 × s)
= Exp(4.0970 + -0.0003 × 725 – 2 × 0.0656)
= Exp(3.7437)
= $42.25
May 3, 2024 calculations
Top border of price channel:
Exp(Y1,200)
= Exp(a + b × X1,200 + 2 × s)
= Exp(a + b × 1,740 + 2 × s)
= Exp(4.0970 + -0.0003 × 1,740 + 2 × 0.0656)
= Exp(3.6949)
= $40.24
Bottom border of price channel:
Exp(Y1,200)
= Exp(a + b × X1,200 – 2 × s)
= Exp(a + b × 1,740 – 2 × s)
= Exp(4.0970 + -0.0003 × 1,740 – 2 × 0.0656)
= Exp(3.4326)
= $30.96
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 10.58% per annum.
- WTRG price at the close of July 26, 2024 was $40.71 and was higher than the top border of the primary price channel by $1.49 (3.80%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: September 26, 2023
End date: July 26, 2024
a = 2.7424
b = 0.0005
s = 0.0354
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 20.09%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0354) – 1
= 15.22%
September 26, 2023 calculations
Top border of price channel:
Exp(Y1,048)
= Exp(a + b × X1,048 + 2 × s)
= Exp(a + b × 1,520 + 2 × s)
= Exp(2.7424 + 0.0005 × 1,520 + 2 × 0.0354)
= Exp(3.5756)
= $35.72
Bottom border of price channel:
Exp(Y1,048)
= Exp(a + b × X1,048 – 2 × s)
= Exp(a + b × 1,520 – 2 × s)
= Exp(2.7424 + 0.0005 × 1,520 – 2 × 0.0354)
= Exp(3.4339)
= $31.00
July 26, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(2.7424 + 0.0005 × 1,824 + 2 × 0.0354)
= Exp(3.7281)
= $41.60
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(2.7424 + 0.0005 × 1,824 – 2 × 0.0354)
= Exp(3.5864)
= $36.10
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 20.09% per annum.
- WTRG price at the close of July 26, 2024 was inside the secondary price channel.