Stock Price Trends

Light & Wonder Inc (LNW)

Light & Wonder, Inc. develops technology-based products and services and related content for the gaming, lottery, social gaming and digital industries in the United States and internationally. The company is headquartered in Las Vegas, Nevada.

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 6.25% per annum.
  • LNW price at the close of November 19, 2024 was $91.37 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 44.30% per annum.
  • LNW price at the close of November 19, 2024 was lower than the bottom border of the secondary price channel by $8.87 (8.84%). This indicates a possible reversal in the secondary trend direction.

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 LNW 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: January 6, 2021
End date: November 3, 2023

a = 3.9430

b = 0.0002

s = 0.1737

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 6.25%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1737) – 1
= 100.33%

January 6, 2021 calculations

Top border of price channel:

Exp(Y283)
= Exp(a + b × X283 + 2 × s)
= Exp(a + b × 413 + 2 × s)
= Exp(3.9430 + 0.0002 × 413 + 2 × 0.1737)
= Exp(4.3590)
= $78.18

Bottom border of price channel:

Exp(Y283)
= Exp(a + b × X283 – 2 × s)
= Exp(a + b × 413 – 2 × s)
= Exp(3.9430 + 0.0002 × 413 – 2 × 0.1737)
= Exp(3.6642)
= $39.02

November 3, 2023 calculations

Top border of price channel:

Exp(Y995)
= Exp(a + b × X995 + 2 × s)
= Exp(a + b × 1,444 + 2 × s)
= Exp(3.9430 + 0.0002 × 1,444 + 2 × 0.1737)
= Exp(4.5304)
= $92.79

Bottom border of price channel:

Exp(Y995)
= Exp(a + b × X995 – 2 × s)
= Exp(a + b × 1,444 – 2 × s)
= Exp(3.9430 + 0.0002 × 1,444 – 2 × 0.1737)
= Exp(3.8356)
= $46.32

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 6.25% per annum.
  • LNW price at the close of November 19, 2024 was $91.37 and was inside the primary price channel.

Secondary Trend

Start date: May 9, 2022
End date: September 23, 2024

a = 2.9181

b = 0.0010

s = 0.0726

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 44.30%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0726) – 1
= 33.70%

May 9, 2022 calculations

Top border of price channel:

Exp(Y620)
= Exp(a + b × X620 + 2 × s)
= Exp(a + b × 901 + 2 × s)
= Exp(2.9181 + 0.0010 × 901 + 2 × 0.0726)
= Exp(3.9686)
= $52.91

Bottom border of price channel:

Exp(Y620)
= Exp(a + b × X620 – 2 × s)
= Exp(a + b × 901 – 2 × s)
= Exp(2.9181 + 0.0010 × 901 – 2 × 0.0726)
= Exp(3.6782)
= $39.57

September 23, 2024 calculations

Top border of price channel:

Exp(Y1,216)
= Exp(a + b × X1,216 + 2 × s)
= Exp(a + b × 1,769 + 2 × s)
= Exp(2.9181 + 0.0010 × 1,769 + 2 × 0.0726)
= Exp(4.8407)
= $126.55

Bottom border of price channel:

Exp(Y1,216)
= Exp(a + b × X1,216 – 2 × s)
= Exp(a + b × 1,769 – 2 × s)
= Exp(2.9181 + 0.0010 × 1,769 – 2 × 0.0726)
= Exp(4.5503)
= $94.66

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 44.30% per annum.
  • LNW price at the close of November 19, 2024 was lower than the bottom border of the secondary price channel by $8.87 (8.84%). This indicates a possible reversal in the secondary trend direction.