First American Corporation (FAF)
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.
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 41.44% per annum.
- FAF price at the close of January 27, 2025 was $64.08 and was lower than the bottom border of the primary price channel by $124.60 (66.04%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 0.35% per annum.
- FAF price at the close of January 27, 2025 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 FAF 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: April 12, 2021
End date: January 19, 2022
a = 3.5661
b = 0.0009
s = 0.0303
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0009) – 1
= 41.44%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0303) – 1
= 12.87%
April 12, 2021 calculations
Top border of price channel:
Exp(Y303)
= Exp(a + b × X303 + 2 × s)
= Exp(a + b × 440 + 2 × s)
= Exp(3.5661 + 0.0009 × 440 + 2 × 0.0303)
= Exp(4.0446)
= $57.09
Bottom border of price channel:
Exp(Y303)
= Exp(a + b × X303 – 2 × s)
= Exp(a + b × 440 – 2 × s)
= Exp(3.5661 + 0.0009 × 440 – 2 × 0.0303)
= Exp(3.9235)
= $50.58
January 19, 2022 calculations
Top border of price channel:
Exp(Y499)
= Exp(a + b × X499 + 2 × s)
= Exp(a + b × 722 + 2 × s)
= Exp(3.5661 + 0.0009 × 722 + 2 × 0.0303)
= Exp(4.3125)
= $74.62
Bottom border of price channel:
Exp(Y499)
= Exp(a + b × X499 – 2 × s)
= Exp(a + b × 722 – 2 × s)
= Exp(3.5661 + 0.0009 × 722 – 2 × 0.0303)
= Exp(4.1914)
= $66.11
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 41.44% per annum.
- FAF price at the close of January 27, 2025 was $64.08 and was lower than the bottom border of the primary price channel by $124.60 (66.04%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: April 12, 2021
End date: January 27, 2025
a = 4.0229
b = 0.0000
s = 0.1084
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 0.35%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1084) – 1
= 54.29%
April 12, 2021 calculations
Top border of price channel:
Exp(Y303)
= Exp(a + b × X303 + 2 × s)
= Exp(a + b × 440 + 2 × s)
= Exp(4.0229 + 0.0000 × 440 + 2 × 0.1084)
= Exp(4.2439)
= $69.68
Bottom border of price channel:
Exp(Y303)
= Exp(a + b × X303 – 2 × s)
= Exp(a + b × 440 – 2 × s)
= Exp(4.0229 + 0.0000 × 440 – 2 × 0.1084)
= Exp(3.8102)
= $45.16
January 27, 2025 calculations
Top border of price channel:
Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(4.0229 + 0.0000 × 1,826 + 2 × 0.1084)
= Exp(4.2571)
= $70.60
Bottom border of price channel:
Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.0229 + 0.0000 × 1,826 – 2 × 0.1084)
= Exp(3.8234)
= $45.76
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 0.35% per annum.
- FAF price at the close of January 27, 2025 was inside the secondary price channel.