Stock Price Trends

Allegro Microsystems Inc (ALGM)

Allegro MicroSystems, Inc. designs, develops, manufactures and markets sensor integrated circuits (ICs) and analog power ICs for specific applications for motion control and energy efficient systems. The company is headquartered in Manchester, New Hampshire.

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 34.20% per annum.
  • ALGM price at the close of November 19, 2024 was $19.49 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 58.79% per annum.
  • ALGM price at the close of November 19, 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 ALGM 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: February 1, 2023
End date: November 19, 2024

a = 4.7677

b = -0.0011

s = 0.1126

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0011) – 1
= -34.20%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1126) – 1
= 56.87%

February 1, 2023 calculations

Top border of price channel:

Exp(Y567)
= Exp(a + b × X567 + 2 × s)
= Exp(a + b × 825 + 2 × s)
= Exp(4.7677 + -0.0011 × 825 + 2 × 0.1126)
= Exp(4.0467)
= $57.21

Bottom border of price channel:

Exp(Y567)
= Exp(a + b × X567 – 2 × s)
= Exp(a + b × 825 – 2 × s)
= Exp(4.7677 + -0.0011 × 825 – 2 × 0.1126)
= Exp(3.5964)
= $36.47

November 19, 2024 calculations

Top border of price channel:

Exp(Y1,020)
= Exp(a + b × X1,020 + 2 × s)
= Exp(a + b × 1,482 + 2 × s)
= Exp(4.7677 + -0.0011 × 1,482 + 2 × 0.1126)
= Exp(3.2932)
= $26.93

Bottom border of price channel:

Exp(Y1,020)
= Exp(a + b × X1,020 – 2 × s)
= Exp(a + b × 1,482 – 2 × s)
= Exp(4.7677 + -0.0011 × 1,482 – 2 × 0.1126)
= Exp(2.8430)
= $17.17

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 34.20% per annum.
  • ALGM price at the close of November 19, 2024 was $19.49 and was inside the primary price channel.

Secondary Trend

Start date: May 15, 2024
End date: November 19, 2024

a = 6.5797

b = -0.0024

s = 0.0718

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0024) – 1
= -58.79%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0718) – 1
= 33.29%

May 15, 2024 calculations

Top border of price channel:

Exp(Y890)
= Exp(a + b × X890 + 2 × s)
= Exp(a + b × 1,294 + 2 × s)
= Exp(6.5797 + -0.0024 × 1,294 + 2 × 0.0718)
= Exp(3.5806)
= $35.89

Bottom border of price channel:

Exp(Y890)
= Exp(a + b × X890 – 2 × s)
= Exp(a + b × 1,294 – 2 × s)
= Exp(6.5797 + -0.0024 × 1,294 – 2 × 0.0718)
= Exp(3.2933)
= $26.93

November 19, 2024 calculations

Top border of price channel:

Exp(Y1,020)
= Exp(a + b × X1,020 + 2 × s)
= Exp(a + b × 1,482 + 2 × s)
= Exp(6.5797 + -0.0024 × 1,482 + 2 × 0.0718)
= Exp(3.1240)
= $22.74

Bottom border of price channel:

Exp(Y1,020)
= Exp(a + b × X1,020 – 2 × s)
= Exp(a + b × 1,482 – 2 × s)
= Exp(6.5797 + -0.0024 × 1,482 – 2 × 0.0718)
= Exp(2.8366)
= $17.06

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 58.79% per annum.
  • ALGM price at the close of November 19, 2024 was inside the secondary price channel.