Stock Price Trends

Northrop Grumman Corporation (NOC)

Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.

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 0.63% per annum.
  • NOC price at the close of March 31, 2025 was $512.01 and was higher than the top border of the primary price channel by $17.22 (3.48%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 6.37% per annum.
  • NOC price at the close of March 31, 2025 was inside the secondary price channel.
  • 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 NOC 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 28, 2022
End date: July 29, 2024

a = 6.1294

b = 0.0000

s = 0.0533

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= -0.63%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0533) – 1
= 23.75%

February 28, 2022 calculations

Top border of price channel:

Exp(Y481)
= Exp(a + b × X481 + 2 × s)
= Exp(a + b × 698 + 2 × s)
= Exp(6.1294 + 0.0000 × 698 + 2 × 0.0533)
= Exp(6.2238)
= $504.61

Bottom border of price channel:

Exp(Y481)
= Exp(a + b × X481 – 2 × s)
= Exp(a + b × 698 – 2 × s)
= Exp(6.1294 + 0.0000 × 698 – 2 × 0.0533)
= Exp(6.0106)
= $407.75

July 29, 2024 calculations

Top border of price channel:

Exp(Y1,087)
= Exp(a + b × X1,087 + 2 × s)
= Exp(a + b × 1,580 + 2 × s)
= Exp(6.1294 + 0.0000 × 1,580 + 2 × 0.0533)
= Exp(6.2084)
= $496.90

Bottom border of price channel:

Exp(Y1,087)
= Exp(a + b × X1,087 – 2 × s)
= Exp(a + b × 1,580 – 2 × s)
= Exp(6.1294 + 0.0000 × 1,580 – 2 × 0.0533)
= Exp(5.9953)
= $401.52

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 0.63% per annum.
  • NOC price at the close of March 31, 2025 was $512.01 and was higher than the top border of the primary price channel by $17.22 (3.48%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: January 13, 2023
End date: March 31, 2025

a = 5.8867

b = 0.0002

s = 0.0488

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 6.37%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0488) – 1
= 21.54%

January 13, 2023 calculations

Top border of price channel:

Exp(Y702)
= Exp(a + b × X702 + 2 × s)
= Exp(a + b × 1,017 + 2 × s)
= Exp(5.8867 + 0.0002 × 1,017 + 2 × 0.0488)
= Exp(6.1562)
= $471.62

Bottom border of price channel:

Exp(Y702)
= Exp(a + b × X702 – 2 × s)
= Exp(a + b × 1,017 – 2 × s)
= Exp(5.8867 + 0.0002 × 1,017 – 2 × 0.0488)
= Exp(5.9611)
= $388.03

March 31, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(5.8867 + 0.0002 × 1,825 + 2 × 0.0488)
= Exp(6.2928)
= $540.67

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(5.8867 + 0.0002 × 1,825 – 2 × 0.0488)
= Exp(6.0977)
= $444.83

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 6.37% per annum.
  • NOC price at the close of March 31, 2025 was inside the secondary price channel.