Stock Price Trends

NetApp Inc (NTAP)

NetApp, Inc. is an American hybrid cloud data services and data management company headquartered in Sunnyvale, California. Founded in 1992 with an IPO in 1995, NetApp offers cloud data services for management of applications and data both online and physically.

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 59.61% per annum.
  • NTAP price at the close of November 19, 2024 was $122.20 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 13.78% per annum.
  • NTAP price at the close of November 19, 2024 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 NTAP 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: December 15, 2022
End date: October 29, 2024

a = 2.5669

b = 0.0013

s = 0.0676

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 59.61%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0676) – 1
= 31.03%

December 15, 2022 calculations

Top border of price channel:

Exp(Y773)
= Exp(a + b × X773 + 2 × s)
= Exp(a + b × 1,121 + 2 × s)
= Exp(2.5669 + 0.0013 × 1,121 + 2 × 0.0676)
= Exp(4.1380)
= $62.68

Bottom border of price channel:

Exp(Y773)
= Exp(a + b × X773 – 2 × s)
= Exp(a + b × 1,121 – 2 × s)
= Exp(2.5669 + 0.0013 × 1,121 – 2 × 0.0676)
= Exp(3.8678)
= $47.84

October 29, 2024 calculations

Top border of price channel:

Exp(Y1,242)
= Exp(a + b × X1,242 + 2 × s)
= Exp(a + b × 1,805 + 2 × s)
= Exp(2.5669 + 0.0013 × 1,805 + 2 × 0.0676)
= Exp(5.0143)
= $150.55

Bottom border of price channel:

Exp(Y1,242)
= Exp(a + b × X1,242 – 2 × s)
= Exp(a + b × 1,805 – 2 × s)
= Exp(2.5669 + 0.0013 × 1,805 – 2 × 0.0676)
= Exp(4.7441)
= $114.90

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 59.61% per annum.
  • NTAP price at the close of November 19, 2024 was $122.20 and was inside the primary price channel.

Secondary Trend

Start date: June 10, 2024
End date: November 19, 2024

a = 5.5254

b = -0.0004

s = 0.0361

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -13.78%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0361) – 1
= 15.53%

June 10, 2024 calculations

Top border of price channel:

Exp(Y1,144)
= Exp(a + b × X1,144 + 2 × s)
= Exp(a + b × 1,664 + 2 × s)
= Exp(5.5254 + -0.0004 × 1,664 + 2 × 0.0361)
= Exp(4.9217)
= $137.24

Bottom border of price channel:

Exp(Y1,144)
= Exp(a + b × X1,144 – 2 × s)
= Exp(a + b × 1,664 – 2 × s)
= Exp(5.5254 + -0.0004 × 1,664 – 2 × 0.0361)
= Exp(4.7774)
= $118.79

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(5.5254 + -0.0004 × 1,826 + 2 × 0.0361)
= Exp(4.8559)
= $128.50

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.5254 + -0.0004 × 1,826 – 2 × 0.0361)
= Exp(4.7116)
= $111.23

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 13.78% per annum.
  • NTAP price at the close of November 19, 2024 was inside the secondary price channel.