Stock Price Trends

Power Integrations Inc (POWI)

Power Integrations, Inc. designs, develops, manufactures and markets mixed signal and analog integrated circuits (ICs) and other electronic components and circuits used in high voltage power conversion worldwide. The company is headquartered in San Jose, California.

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 6.45% per annum.
  • POWI price at the close of November 20, 2024 was $61.14 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 20.67% per annum.
  • POWI 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 POWI 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: January 5, 2021
End date: November 20, 2024

a = 4.5666

b = -0.0002

s = 0.1040

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -6.45%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1040) – 1
= 51.60%

January 5, 2021 calculations

Top border of price channel:

Exp(Y281)
= Exp(a + b × X281 + 2 × s)
= Exp(a + b × 411 + 2 × s)
= Exp(4.5666 + -0.0002 × 411 + 2 × 0.1040)
= Exp(4.6996)
= $109.90

Bottom border of price channel:

Exp(Y281)
= Exp(a + b × X281 – 2 × s)
= Exp(a + b × 411 – 2 × s)
= Exp(4.5666 + -0.0002 × 411 – 2 × 0.1040)
= Exp(4.2835)
= $72.49

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(4.5666 + -0.0002 × 1,826 + 2 × 0.1040)
= Exp(4.4409)
= $84.85

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.5666 + -0.0002 × 1,826 – 2 × 0.1040)
= Exp(4.0248)
= $55.97

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 6.45% per annum.
  • POWI price at the close of November 20, 2024 was $61.14 and was inside the primary price channel.

Secondary Trend

Start date: May 18, 2023
End date: November 20, 2024

a = 5.2864

b = -0.0006

s = 0.0635

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -20.67%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0635) – 1
= 28.94%

May 18, 2023 calculations

Top border of price channel:

Exp(Y877)
= Exp(a + b × X877 + 2 × s)
= Exp(a + b × 1,274 + 2 × s)
= Exp(5.2864 + -0.0006 × 1,274 + 2 × 0.0635)
= Exp(4.6050)
= $99.98

Bottom border of price channel:

Exp(Y877)
= Exp(a + b × X877 – 2 × s)
= Exp(a + b × 1,274 – 2 × s)
= Exp(5.2864 + -0.0006 × 1,274 – 2 × 0.0635)
= Exp(4.3509)
= $77.55

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(5.2864 + -0.0006 × 1,826 + 2 × 0.0635)
= Exp(4.2547)
= $70.44

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.2864 + -0.0006 × 1,826 – 2 × 0.0635)
= Exp(4.0006)
= $54.63

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 20.67% per annum.
  • POWI price at the close of November 20, 2024 was inside the secondary price channel.