Stock Price Trends

Baxter International Inc (BAX)

Baxter International Inc. is an American multinational health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.

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 29.66% per annum.
  • BAX price at the close of November 19, 2024 was $32.52 and was higher than the top border of the primary price channel by $1.93 (6.32%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 7.90% per annum.
  • BAX 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 BAX 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: March 26, 2021
End date: January 3, 2024

a = 4.9784

b = -0.0010

s = 0.1011

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0010) – 1
= -29.66%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1011) – 1
= 49.82%

March 26, 2021 calculations

Top border of price channel:

Exp(Y338)
= Exp(a + b × X338 + 2 × s)
= Exp(a + b × 492 + 2 × s)
= Exp(4.9784 + -0.0010 × 492 + 2 × 0.1011)
= Exp(4.7063)
= $110.64

Bottom border of price channel:

Exp(Y338)
= Exp(a + b × X338 – 2 × s)
= Exp(a + b × 492 – 2 × s)
= Exp(4.9784 + -0.0010 × 492 – 2 × 0.1011)
= Exp(4.3020)
= $73.85

January 3, 2024 calculations

Top border of price channel:

Exp(Y1,035)
= Exp(a + b × X1,035 + 2 × s)
= Exp(a + b × 1,505 + 2 × s)
= Exp(4.9784 + -0.0010 × 1,505 + 2 × 0.1011)
= Exp(3.7300)
= $41.68

Bottom border of price channel:

Exp(Y1,035)
= Exp(a + b × X1,035 – 2 × s)
= Exp(a + b × 1,505 – 2 × s)
= Exp(4.9784 + -0.0010 × 1,505 – 2 × 0.1011)
= Exp(3.3257)
= $27.82

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 29.66% per annum.
  • BAX price at the close of November 19, 2024 was $32.52 and was higher than the top border of the primary price channel by $1.93 (6.32%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: January 9, 2023
End date: November 19, 2024

a = 3.9758

b = -0.0002

s = 0.0824

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -7.90%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0824) – 1
= 39.02%

January 9, 2023 calculations

Top border of price channel:

Exp(Y788)
= Exp(a + b × X788 + 2 × s)
= Exp(a + b × 1,146 + 2 × s)
= Exp(3.9758 + -0.0002 × 1,146 + 2 × 0.0824)
= Exp(3.8821)
= $48.53

Bottom border of price channel:

Exp(Y788)
= Exp(a + b × X788 – 2 × s)
= Exp(a + b × 1,146 – 2 × s)
= Exp(3.9758 + -0.0002 × 1,146 – 2 × 0.0824)
= Exp(3.5526)
= $34.90

November 19, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.9758 + -0.0002 × 1,826 + 2 × 0.0824)
= Exp(3.7287)
= $41.63

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.9758 + -0.0002 × 1,826 – 2 × 0.0824)
= Exp(3.3993)
= $29.94

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 7.90% per annum.
  • BAX price at the close of November 19, 2024 was inside the secondary price channel.