Donaldson Company Inc (DCI)
Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company is headquartered in Bloomington, Minnesota.
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 18.31% per annum.
- DCI price at the close of November 19, 2024 was $75.26 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 3.11% per annum.
- DCI 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 DCI 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 3, 2022
End date: November 19, 2024
a = 3.4948
b = 0.0005
s = 0.0530
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 18.31%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0530) – 1
= 23.60%
March 3, 2022 calculations
Top border of price channel:
Exp(Y574)
= Exp(a + b × X574 + 2 × s)
= Exp(a + b × 834 + 2 × s)
= Exp(3.4948 + 0.0005 × 834 + 2 × 0.0530)
= Exp(3.9850)
= $53.79
Bottom border of price channel:
Exp(Y574)
= Exp(a + b × X574 – 2 × s)
= Exp(a + b × 834 – 2 × s)
= Exp(3.4948 + 0.0005 × 834 – 2 × 0.0530)
= Exp(3.7731)
= $43.52
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(3.4948 + 0.0005 × 1,826 + 2 × 0.0530)
= Exp(4.4420)
= $84.95
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.4948 + 0.0005 × 1,826 – 2 × 0.0530)
= Exp(4.2301)
= $68.73
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 18.31% per annum.
- DCI price at the close of November 19, 2024 was $75.26 and was inside the primary price channel.
Secondary Trend
Start date: February 29, 2024
End date: November 19, 2024
a = 4.1477
b = 0.0001
s = 0.0215
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 3.11%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0215) – 1
= 9.00%
February 29, 2024 calculations
Top border of price channel:
Exp(Y1,074)
= Exp(a + b × X1,074 + 2 × s)
= Exp(a + b × 1,562 + 2 × s)
= Exp(4.1477 + 0.0001 × 1,562 + 2 × 0.0215)
= Exp(4.3220)
= $75.34
Bottom border of price channel:
Exp(Y1,074)
= Exp(a + b × X1,074 – 2 × s)
= Exp(a + b × 1,562 – 2 × s)
= Exp(4.1477 + 0.0001 × 1,562 – 2 × 0.0215)
= Exp(4.2358)
= $69.12
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(4.1477 + 0.0001 × 1,826 + 2 × 0.0215)
= Exp(4.3441)
= $77.02
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.1477 + 0.0001 × 1,826 – 2 × 0.0215)
= Exp(4.2580)
= $70.67
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 3.11% per annum.
- DCI price at the close of November 19, 2024 was inside the secondary price channel.