Globus Medical (GMED)
Globus Medical, Inc., a medical device company, develops and markets healthcare solutions for patients with musculoskeletal disorders. The company is headquartered in Audubon, Pennsylvania.
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 68.43% per annum.
- GMED price at the close of November 20, 2024 was $83.59 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 37.74% per annum.
- GMED price at the close of November 20, 2024 was higher than the top border of the secondary price channel by $1.21 (1.46%).
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 GMED 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: October 24, 2023
End date: November 20, 2024
a = 1.7659
b = 0.0014
s = 0.0629
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0014) – 1
= 68.43%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0629) – 1
= 28.62%
October 24, 2023 calculations
Top border of price channel:
Exp(Y986)
= Exp(a + b × X986 + 2 × s)
= Exp(a + b × 1,433 + 2 × s)
= Exp(1.7659 + 0.0014 × 1,433 + 2 × 0.0629)
= Exp(3.9386)
= $51.35
Bottom border of price channel:
Exp(Y986)
= Exp(a + b × X986 – 2 × s)
= Exp(a + b × 1,433 – 2 × s)
= Exp(1.7659 + 0.0014 × 1,433 – 2 × 0.0629)
= Exp(3.6869)
= $39.92
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(1.7659 + 0.0014 × 1,826 + 2 × 0.0629)
= Exp(4.4999)
= $90.01
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.7659 + 0.0014 × 1,826 – 2 × 0.0629)
= Exp(4.2482)
= $69.98
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 68.43% per annum.
- GMED price at the close of November 20, 2024 was $83.59 and was inside the primary price channel.
Secondary Trend
Start date: May 9, 2024
End date: November 20, 2024
a = 2.7399
b = 0.0009
s = 0.0349
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0009) – 1
= 37.74%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0349) – 1
= 14.96%
May 9, 2024 calculations
Top border of price channel:
Exp(Y1,122)
= Exp(a + b × X1,122 + 2 × s)
= Exp(a + b × 1,631 + 2 × s)
= Exp(2.7399 + 0.0009 × 1,631 + 2 × 0.0349)
= Exp(4.2403)
= $69.43
Bottom border of price channel:
Exp(Y1,122)
= Exp(a + b × X1,122 – 2 × s)
= Exp(a + b × 1,631 – 2 × s)
= Exp(2.7399 + 0.0009 × 1,631 – 2 × 0.0349)
= Exp(4.1009)
= $60.40
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(2.7399 + 0.0009 × 1,826 + 2 × 0.0349)
= Exp(4.4114)
= $82.38
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.7399 + 0.0009 × 1,826 – 2 × 0.0349)
= Exp(4.2720)
= $71.66
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 37.74% per annum.
- GMED price at the close of November 20, 2024 was higher than the top border of the secondary price channel by $1.21 (1.46%).