Zimmer Biomet Holdings Inc (ZBH)
Zimmer Biomet is a publicly traded medical device company. The company is headquartered in Warsaw, Indiana, where it is part of the medical devices business cluster.
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 50.94% per annum.
- ZBH price at the close of May 8, 2024 was $120.85 and was lower than the bottom border of the primary price channel by $7.70 (5.99%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 4.95% per annum.
- ZBH price at the close of May 8, 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 ZBH 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: September 26, 2023
End date: April 11, 2024
a = 2.8540
b = 0.0011
s = 0.0287
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 50.94%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0287) – 1
= 12.18%
September 26, 2023 calculations
Top border of price channel:
Exp(Y1,103)
= Exp(a + b × X1,103 + 2 × s)
= Exp(a + b × 1,601 + 2 × s)
= Exp(2.8540 + 0.0011 × 1,601 + 2 × 0.0287)
= Exp(4.7175)
= $111.89
Bottom border of price channel:
Exp(Y1,103)
= Exp(a + b × X1,103 – 2 × s)
= Exp(a + b × 1,601 – 2 × s)
= Exp(2.8540 + 0.0011 × 1,601 – 2 × 0.0287)
= Exp(4.6025)
= $99.74
April 11, 2024 calculations
Top border of price channel:
Exp(Y1,239)
= Exp(a + b × X1,239 + 2 × s)
= Exp(a + b × 1,799 + 2 × s)
= Exp(2.8540 + 0.0011 × 1,799 + 2 × 0.0287)
= Exp(4.9408)
= $139.89
Bottom border of price channel:
Exp(Y1,239)
= Exp(a + b × X1,239 – 2 × s)
= Exp(a + b × 1,799 – 2 × s)
= Exp(2.8540 + 0.0011 × 1,799 – 2 × 0.0287)
= Exp(4.8259)
= $124.70
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 50.94% per annum.
- ZBH price at the close of May 8, 2024 was $120.85 and was lower than the bottom border of the primary price channel by $7.70 (5.99%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: December 19, 2023
End date: May 8, 2024
a = 4.5869
b = 0.0001
s = 0.0256
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 4.95%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0256) – 1
= 10.77%
December 19, 2023 calculations
Top border of price channel:
Exp(Y1,162)
= Exp(a + b × X1,162 + 2 × s)
= Exp(a + b × 1,685 + 2 × s)
= Exp(4.5869 + 0.0001 × 1,685 + 2 × 0.0256)
= Exp(4.8611)
= $129.17
Bottom border of price channel:
Exp(Y1,162)
= Exp(a + b × X1,162 – 2 × s)
= Exp(a + b × 1,685 – 2 × s)
= Exp(4.5869 + 0.0001 × 1,685 – 2 × 0.0256)
= Exp(4.7588)
= $116.60
May 8, 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(4.5869 + 0.0001 × 1,826 + 2 × 0.0256)
= Exp(4.8798)
= $131.60
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.5869 + 0.0001 × 1,826 – 2 × 0.0256)
= Exp(4.7774)
= $118.80
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 4.95% per annum.
- ZBH price at the close of May 8, 2024 was inside the secondary price channel.