Diamondback Energy Inc (FANG)
Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.
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 23.60% per annum.
- FANG price at the close of April 1, 2025 was $160.87 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 734.62% per annum.
- FANG price at the close of April 1, 2025 was inside the secondary price channel.
- 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 FANG 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 28, 2024
End date: April 1, 2025
a = 6.3955
b = -0.0007
s = 0.0462
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0007) – 1
= -23.60%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0462) – 1
= 20.29%
March 28, 2024 calculations
Top border of price channel:
Exp(Y1,003)
= Exp(a + b × X1,003 + 2 × s)
= Exp(a + b × 1,456 + 2 × s)
= Exp(6.3955 + -0.0007 × 1,456 + 2 × 0.0462)
= Exp(5.4140)
= $224.53
Bottom border of price channel:
Exp(Y1,003)
= Exp(a + b × X1,003 – 2 × s)
= Exp(a + b × 1,456 – 2 × s)
= Exp(6.3955 + -0.0007 × 1,456 – 2 × 0.0462)
= Exp(5.2293)
= $186.66
April 1, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(6.3955 + -0.0007 × 1,825 + 2 × 0.0462)
= Exp(5.1418)
= $171.03
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(6.3955 + -0.0007 × 1,825 – 2 × 0.0462)
= Exp(4.9571)
= $142.19
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 23.60% per annum.
- FANG price at the close of April 1, 2025 was $160.87 and was inside the primary price channel.
Secondary Trend
Start date: March 4, 2025
End date: April 1, 2025
a = -5.5004
b = 0.0058
s = 0.0213
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0058) – 1
= 734.62%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0213) – 1
= 8.88%
March 4, 2025 calculations
Top border of price channel:
Exp(Y1,235)
= Exp(a + b × X1,235 + 2 × s)
= Exp(a + b × 1,797 + 2 × s)
= Exp(-5.5004 + 0.0058 × 1,797 + 2 × 0.0213)
= Exp(4.9884)
= $146.71
Bottom border of price channel:
Exp(Y1,235)
= Exp(a + b × X1,235 – 2 × s)
= Exp(a + b × 1,797 – 2 × s)
= Exp(-5.5004 + 0.0058 × 1,797 – 2 × 0.0213)
= Exp(4.9034)
= $134.74
April 1, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(-5.5004 + 0.0058 × 1,825 + 2 × 0.0213)
= Exp(5.1512)
= $172.64
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(-5.5004 + 0.0058 × 1,825 – 2 × 0.0213)
= Exp(5.0661)
= $158.56
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 734.62% per annum.
- FANG price at the close of April 1, 2025 was inside the secondary price channel.