American Water Works (AWK)
American Water is an American public utility company operating in the United States and Canada.
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.
- AWK price at the close of November 20, 2024 was $137.89 and was higher than the top border of the primary price channel by $10.88 (8.57%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 44.54% per annum.
- AWK price at the close of November 20, 2024 was lower than the bottom border of the secondary price channel by $5.49 (3.83%). This indicates a possible reversal in the secondary trend direction.
- 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 AWK 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 6, 2021
End date: May 6, 2024
a = 5.2877
b = -0.0003
s = 0.0580
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.58%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0580) – 1
= 26.13%
July 6, 2021 calculations
Top border of price channel:
Exp(Y406)
= Exp(a + b × X406 + 2 × s)
= Exp(a + b × 593 + 2 × s)
= Exp(5.2877 + -0.0003 × 593 + 2 × 0.0580)
= Exp(5.2220)
= $185.31
Bottom border of price channel:
Exp(Y406)
= Exp(a + b × X406 – 2 × s)
= Exp(a + b × 593 – 2 × s)
= Exp(5.2877 + -0.0003 × 593 – 2 × 0.0580)
= Exp(4.9899)
= $146.92
May 6, 2024 calculations
Top border of price channel:
Exp(Y1,119)
= Exp(a + b × X1,119 + 2 × s)
= Exp(a + b × 1,628 + 2 × s)
= Exp(5.2877 + -0.0003 × 1,628 + 2 × 0.0580)
= Exp(4.9049)
= $134.95
Bottom border of price channel:
Exp(Y1,119)
= Exp(a + b × X1,119 – 2 × s)
= Exp(a + b × 1,628 – 2 × s)
= Exp(5.2877 + -0.0003 × 1,628 – 2 × 0.0580)
= Exp(4.6728)
= $107.00
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 10.58% per annum.
- AWK price at the close of November 20, 2024 was $137.89 and was higher than the top border of the primary price channel by $10.88 (8.57%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: January 24, 2024
End date: October 4, 2024
a = 3.1907
b = 0.0010
s = 0.0341
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 44.54%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0341) – 1
= 14.60%
January 24, 2024 calculations
Top border of price channel:
Exp(Y1,048)
= Exp(a + b × X1,048 + 2 × s)
= Exp(a + b × 1,525 + 2 × s)
= Exp(3.1907 + 0.0010 × 1,525 + 2 × 0.0341)
= Exp(4.7980)
= $121.27
Bottom border of price channel:
Exp(Y1,048)
= Exp(a + b × X1,048 – 2 × s)
= Exp(a + b × 1,525 – 2 × s)
= Exp(3.1907 + 0.0010 × 1,525 – 2 × 0.0341)
= Exp(4.6617)
= $105.82
October 4, 2024 calculations
Top border of price channel:
Exp(Y1,224)
= Exp(a + b × X1,224 + 2 × s)
= Exp(a + b × 1,779 + 2 × s)
= Exp(3.1907 + 0.0010 × 1,779 + 2 × 0.0341)
= Exp(5.0544)
= $156.70
Bottom border of price channel:
Exp(Y1,224)
= Exp(a + b × X1,224 – 2 × s)
= Exp(a + b × 1,779 – 2 × s)
= Exp(3.1907 + 0.0010 × 1,779 – 2 × 0.0341)
= Exp(4.9181)
= $136.74
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 44.54% per annum.
- AWK price at the close of November 20, 2024 was lower than the bottom border of the secondary price channel by $5.49 (3.83%). This indicates a possible reversal in the secondary trend direction.