Stock Price Trends

Fabrinet (FN)

Fabrinet offers optical packaging and precision electronic, electromechanical and optical manufacturing services in North America, Asia-Pacific and Europe. The company is headquartered in George Town, the Cayman Islands.

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 125.73% per annum.
  • FN price at the close of November 20, 2024 was $226.30 and was lower than the bottom border of the primary price channel by $96.09 (29.81%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 48.81% per annum.
  • FN price at the close of November 20, 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 FN 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 10, 2023
End date: March 18, 2024

a = 1.8778

b = 0.0022

s = 0.0876

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0022) – 1
= 125.73%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0876) – 1
= 41.97%

March 10, 2023 calculations

Top border of price channel:

Exp(Y829)
= Exp(a + b × X829 + 2 × s)
= Exp(a + b × 1,205 + 2 × s)
= Exp(1.8778 + 0.0022 × 1,205 + 2 × 0.0876)
= Exp(4.7410)
= $114.55

Bottom border of price channel:

Exp(Y829)
= Exp(a + b × X829 – 2 × s)
= Exp(a + b × 1,205 – 2 × s)
= Exp(1.8778 + 0.0022 × 1,205 – 2 × 0.0876)
= Exp(4.3905)
= $80.68

March 18, 2024 calculations

Top border of price channel:

Exp(Y1,085)
= Exp(a + b × X1,085 + 2 × s)
= Exp(a + b × 1,579 + 2 × s)
= Exp(1.8778 + 0.0022 × 1,579 + 2 × 0.0876)
= Exp(5.5753)
= $263.82

Bottom border of price channel:

Exp(Y1,085)
= Exp(a + b × X1,085 – 2 × s)
= Exp(a + b × 1,579 – 2 × s)
= Exp(1.8778 + 0.0022 × 1,579 – 2 × 0.0876)
= Exp(5.2248)
= $185.82

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 125.73% per annum.
  • FN price at the close of November 20, 2024 was $226.30 and was lower than the bottom border of the primary price channel by $96.09 (29.81%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: August 22, 2023
End date: November 20, 2024

a = 3.5676

b = 0.0011

s = 0.0845

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 48.81%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0845) – 1
= 40.19%

August 22, 2023 calculations

Top border of price channel:

Exp(Y942)
= Exp(a + b × X942 + 2 × s)
= Exp(a + b × 1,370 + 2 × s)
= Exp(3.5676 + 0.0011 × 1,370 + 2 × 0.0845)
= Exp(5.2284)
= $186.49

Bottom border of price channel:

Exp(Y942)
= Exp(a + b × X942 – 2 × s)
= Exp(a + b × 1,370 – 2 × s)
= Exp(3.5676 + 0.0011 × 1,370 – 2 × 0.0845)
= Exp(4.8905)
= $133.03

November 20, 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(3.5676 + 0.0011 × 1,826 + 2 × 0.0845)
= Exp(5.7249)
= $306.41

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.5676 + 0.0011 × 1,826 – 2 × 0.0845)
= Exp(5.3871)
= $218.57

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 48.81% per annum.
  • FN price at the close of November 20, 2024 was inside the secondary price channel.