Stock Price Trends

Howmet Aerospace Inc (HWM)

Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.

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 124.16% per annum.
  • HWM price at the close of November 19, 2024 was $116.00 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 91.61% per annum.
  • HWM 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 HWM 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: September 15, 2023
End date: November 19, 2024

a = 0.6836

b = 0.0022

s = 0.0516

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0022) – 1
= 124.16%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0516) – 1
= 22.91%

September 15, 2023 calculations

Top border of price channel:

Exp(Y960)
= Exp(a + b × X960 + 2 × s)
= Exp(a + b × 1,395 + 2 × s)
= Exp(0.6836 + 0.0022 × 1,395 + 2 × 0.0516)
= Exp(3.8718)
= $48.03

Bottom border of price channel:

Exp(Y960)
= Exp(a + b × X960 – 2 × s)
= Exp(a + b × 1,395 – 2 × s)
= Exp(0.6836 + 0.0022 × 1,395 – 2 × 0.0516)
= Exp(3.6655)
= $39.08

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(0.6836 + 0.0022 × 1,826 + 2 × 0.0516)
= Exp(4.8249)
= $124.58

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(0.6836 + 0.0022 × 1,826 – 2 × 0.0516)
= Exp(4.6186)
= $101.36

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 124.16% per annum.
  • HWM price at the close of November 19, 2024 was $116.00 and was inside the primary price channel.

Secondary Trend

Start date: May 2, 2024
End date: November 19, 2024

a = 1.4359

b = 0.0018

s = 0.0493

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 91.61%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0493) – 1
= 21.78%

May 2, 2024 calculations

Top border of price channel:

Exp(Y1,118)
= Exp(a + b × X1,118 + 2 × s)
= Exp(a + b × 1,625 + 2 × s)
= Exp(1.4359 + 0.0018 × 1,625 + 2 × 0.0493)
= Exp(4.4295)
= $83.89

Bottom border of price channel:

Exp(Y1,118)
= Exp(a + b × X1,118 – 2 × s)
= Exp(a + b × 1,625 – 2 × s)
= Exp(1.4359 + 0.0018 × 1,625 – 2 × 0.0493)
= Exp(4.2324)
= $68.88

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(1.4359 + 0.0018 × 1,826 + 2 × 0.0493)
= Exp(4.7876)
= $120.01

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.4359 + 0.0018 × 1,826 – 2 × 0.0493)
= Exp(4.5905)
= $98.55

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 91.61% per annum.
  • HWM price at the close of November 19, 2024 was inside the secondary price channel.