Stock Price Trends

Nordson Corporation (NDSN)

Nordson Corporation designs, manufactures, and markets products and systems for dispensing, applying, and controlling adhesives, coatings, polymers, sealants, biomaterials, and other fluids globally. The company is headquartered in Westlake, Ohio.

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 51.57% per annum.
  • NDSN price at the close of November 19, 2024 was $249.86 and was lower than the bottom border of the primary price channel by $587.20 (70.15%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 3.94% per annum.
  • NDSN 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 NDSN 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 25, 2021
End date: December 15, 2021

a = 4.6936

b = 0.0011

s = 0.0222

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 51.57%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0222) – 1
= 9.27%

May 25, 2021 calculations

Top border of price channel:

Exp(Y379)
= Exp(a + b × X379 + 2 × s)
= Exp(a + b × 552 + 2 × s)
= Exp(4.6936 + 0.0011 × 552 + 2 × 0.0222)
= Exp(5.3669)
= $214.20

Bottom border of price channel:

Exp(Y379)
= Exp(a + b × X379 – 2 × s)
= Exp(a + b × 552 – 2 × s)
= Exp(4.6936 + 0.0011 × 552 – 2 × 0.0222)
= Exp(5.2783)
= $196.03

December 15, 2021 calculations

Top border of price channel:

Exp(Y521)
= Exp(a + b × X521 + 2 × s)
= Exp(a + b × 756 + 2 × s)
= Exp(4.6936 + 0.0011 × 756 + 2 × 0.0222)
= Exp(5.5994)
= $270.26

Bottom border of price channel:

Exp(Y521)
= Exp(a + b × X521 – 2 × s)
= Exp(a + b × 756 – 2 × s)
= Exp(4.6936 + 0.0011 × 756 – 2 × 0.0222)
= Exp(5.5107)
= $247.33

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 51.57% per annum.
  • NDSN price at the close of November 19, 2024 was $249.86 and was lower than the bottom border of the primary price channel by $587.20 (70.15%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: May 25, 2021
End date: November 19, 2024

a = 5.3170

b = 0.0001

s = 0.0683

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 3.94%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0683) – 1
= 31.42%

May 25, 2021 calculations

Top border of price channel:

Exp(Y379)
= Exp(a + b × X379 + 2 × s)
= Exp(a + b × 552 + 2 × s)
= Exp(5.3170 + 0.0001 × 552 + 2 × 0.0683)
= Exp(5.5121)
= $247.67

Bottom border of price channel:

Exp(Y379)
= Exp(a + b × X379 – 2 × s)
= Exp(a + b × 552 – 2 × s)
= Exp(5.3170 + 0.0001 × 552 – 2 × 0.0683)
= Exp(5.2389)
= $188.45

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(5.3170 + 0.0001 × 1,826 + 2 × 0.0683)
= Exp(5.6470)
= $283.44

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.3170 + 0.0001 × 1,826 – 2 × 0.0683)
= Exp(5.3738)
= $215.67

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 3.94% per annum.
  • NDSN price at the close of November 19, 2024 was inside the secondary price channel.