Stock Price Trends

IPG Photonics Corporation (IPGP)

IPG Photonics is a manufacturer of fiber lasers.

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 28.92% per annum.
  • IPGP price at the close of November 19, 2024 was $72.74 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 133.62% per annum.
  • IPGP price at the close of November 19, 2024 was lower than the bottom border of the secondary price channel by $2.82 (3.74%). This indicates a possible reversal in the secondary trend direction.
  • 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 IPGP 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: February 14, 2023
End date: October 25, 2024

a = 5.9627

b = -0.0009

s = 0.0810

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -28.92%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0810) – 1
= 38.26%

February 14, 2023 calculations

Top border of price channel:

Exp(Y813)
= Exp(a + b × X813 + 2 × s)
= Exp(a + b × 1,182 + 2 × s)
= Exp(5.9627 + -0.0009 × 1,182 + 2 × 0.0810)
= Exp(5.0192)
= $151.29

Bottom border of price channel:

Exp(Y813)
= Exp(a + b × X813 – 2 × s)
= Exp(a + b × 1,182 – 2 × s)
= Exp(5.9627 + -0.0009 × 1,182 – 2 × 0.0810)
= Exp(4.6952)
= $109.42

October 25, 2024 calculations

Top border of price channel:

Exp(Y1,240)
= Exp(a + b × X1,240 + 2 × s)
= Exp(a + b × 1,801 + 2 × s)
= Exp(5.9627 + -0.0009 × 1,801 + 2 × 0.0810)
= Exp(4.4403)
= $84.80

Bottom border of price channel:

Exp(Y1,240)
= Exp(a + b × X1,240 – 2 × s)
= Exp(a + b × 1,801 – 2 × s)
= Exp(5.9627 + -0.0009 × 1,801 – 2 × 0.0810)
= Exp(4.1163)
= $61.33

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 28.92% per annum.
  • IPGP price at the close of November 19, 2024 was $72.74 and was inside the primary price channel.

Secondary Trend

Start date: August 5, 2024
End date: November 12, 2024

a = 0.1651

b = 0.0023

s = 0.0425

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0023) – 1
= 133.62%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0425) – 1
= 18.55%

August 5, 2024 calculations

Top border of price channel:

Exp(Y1,182)
= Exp(a + b × X1,182 + 2 × s)
= Exp(a + b × 1,720 + 2 × s)
= Exp(0.1651 + 0.0023 × 1,720 + 2 × 0.0425)
= Exp(4.2487)
= $70.02

Bottom border of price channel:

Exp(Y1,182)
= Exp(a + b × X1,182 – 2 × s)
= Exp(a + b × 1,720 – 2 × s)
= Exp(0.1651 + 0.0023 × 1,720 – 2 × 0.0425)
= Exp(4.0785)
= $59.06

November 12, 2024 calculations

Top border of price channel:

Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,819 + 2 × s)
= Exp(0.1651 + 0.0023 × 1,819 + 2 × 0.0425)
= Exp(4.4789)
= $88.14

Bottom border of price channel:

Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,819 – 2 × s)
= Exp(0.1651 + 0.0023 × 1,819 – 2 × 0.0425)
= Exp(4.3087)
= $74.34

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 133.62% per annum.
  • IPGP price at the close of November 19, 2024 was lower than the bottom border of the secondary price channel by $2.82 (3.74%). This indicates a possible reversal in the secondary trend direction.