Stock Price Trends

Northern Trust Corporation (NTRS)

Northern Trust Corporation is a financial services company headquartered in Chicago, Illinois that caters to corporations, institutional investors, and ultra high net worth individuals.

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 25.91% per annum.
  • NTRS price at the close of November 20, 2024 was $107.88 and was higher than the top border of the primary price channel by $1.51 (1.42%).
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 341.04% per annum.
  • NTRS price at the close of November 20, 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 NTRS 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 2, 2023
End date: November 20, 2024

a = 3.3962

b = 0.0006

s = 0.0591

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 25.91%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0591) – 1
= 26.67%

May 2, 2023 calculations

Top border of price channel:

Exp(Y865)
= Exp(a + b × X865 + 2 × s)
= Exp(a + b × 1,258 + 2 × s)
= Exp(3.3962 + 0.0006 × 1,258 + 2 × 0.0591)
= Exp(4.3085)
= $74.33

Bottom border of price channel:

Exp(Y865)
= Exp(a + b × X865 – 2 × s)
= Exp(a + b × 1,258 – 2 × s)
= Exp(3.3962 + 0.0006 × 1,258 – 2 × 0.0591)
= Exp(4.0720)
= $58.67

November 20, 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(3.3962 + 0.0006 × 1,826 + 2 × 0.0591)
= Exp(4.6670)
= $106.37

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.3962 + 0.0006 × 1,826 – 2 × 0.0591)
= Exp(4.4305)
= $83.97

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 25.91% per annum.
  • NTRS price at the close of November 20, 2024 was $107.88 and was higher than the top border of the primary price channel by $1.51 (1.42%).

Secondary Trend

Start date: September 26, 2024
End date: November 20, 2024

a = -2.7250

b = 0.0041

s = 0.0177

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0041) – 1
= 341.04%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0177) – 1
= 7.32%

September 26, 2024 calculations

Top border of price channel:

Exp(Y1,218)
= Exp(a + b × X1,218 + 2 × s)
= Exp(a + b × 1,771 + 2 × s)
= Exp(-2.7250 + 0.0041 × 1,771 + 2 × 0.0177)
= Exp(4.5106)
= $90.97

Bottom border of price channel:

Exp(Y1,218)
= Exp(a + b × X1,218 – 2 × s)
= Exp(a + b × 1,771 – 2 × s)
= Exp(-2.7250 + 0.0041 × 1,771 – 2 × 0.0177)
= Exp(4.4399)
= $84.77

November 20, 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(-2.7250 + 0.0041 × 1,826 + 2 × 0.0177)
= Exp(4.7342)
= $113.77

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-2.7250 + 0.0041 × 1,826 – 2 × 0.0177)
= Exp(4.6635)
= $106.01

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 341.04% per annum.
  • NTRS price at the close of November 20, 2024 was inside the secondary price channel.