Stock Price Trends

Microchip Technology Inc (MCHP)

Microchip Technology Inc. is a publicly-listed American corporation that manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits.

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 51.47% per annum.
  • MCHP price at the close of March 28, 2025 was $48.70 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 25.15% per annum.
  • MCHP price at the close of March 28, 2025 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 MCHP 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: May 6, 2024
End date: March 28, 2025

a = 7.5511

b = -0.0020

s = 0.0572

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0020) – 1
= -51.47%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0572) – 1
= 25.72%

May 6, 2024 calculations

Top border of price channel:

Exp(Y1,031)
= Exp(a + b × X1,031 + 2 × s)
= Exp(a + b × 1,497 + 2 × s)
= Exp(7.5511 + -0.0020 × 1,497 + 2 × 0.0572)
= Exp(4.7005)
= $110.00

Bottom border of price channel:

Exp(Y1,031)
= Exp(a + b × X1,031 – 2 × s)
= Exp(a + b × 1,497 – 2 × s)
= Exp(7.5511 + -0.0020 × 1,497 – 2 × 0.0572)
= Exp(4.4716)
= $87.49

March 28, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(7.5511 + -0.0020 × 1,823 + 2 × 0.0572)
= Exp(4.0548)
= $57.67

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(7.5511 + -0.0020 × 1,823 – 2 × 0.0572)
= Exp(3.8259)
= $45.87

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 51.47% per annum.
  • MCHP price at the close of March 28, 2025 was $48.70 and was inside the primary price channel.

Secondary Trend

Start date: December 4, 2024
End date: March 28, 2025

a = 5.4319

b = -0.0008

s = 0.0508

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0008) – 1
= -25.15%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0508) – 1
= 22.52%

December 4, 2024 calculations

Top border of price channel:

Exp(Y1,178)
= Exp(a + b × X1,178 + 2 × s)
= Exp(a + b × 1,709 + 2 × s)
= Exp(5.4319 + -0.0008 × 1,709 + 2 × 0.0508)
= Exp(4.1768)
= $65.16

Bottom border of price channel:

Exp(Y1,178)
= Exp(a + b × X1,178 – 2 × s)
= Exp(a + b × 1,709 – 2 × s)
= Exp(5.4319 + -0.0008 × 1,709 – 2 × 0.0508)
= Exp(3.9737)
= $53.18

March 28, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(5.4319 + -0.0008 × 1,823 + 2 × 0.0508)
= Exp(4.0863)
= $59.52

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(5.4319 + -0.0008 × 1,823 – 2 × 0.0508)
= Exp(3.8832)
= $48.58

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 25.15% per annum.
  • MCHP price at the close of March 28, 2025 was inside the secondary price channel.