Stock Price Trends

Proto Labs Inc (PRLB)

Proto Labs, Inc., is an e-commerce-driven digital manufacturer of custom prototypes and on-demand production parts around the world. The company is headquartered in Maple Plain, Minnesota.

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 6.53% per annum.
  • PRLB price at the close of November 19, 2024 was $37.01 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 21.74% per annum.
  • PRLB price at the close of November 19, 2024 was higher than the top border of the secondary price channel by $3.00 (8.81%). This indicates a possible reversal in the secondary trend direction.
  • 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 PRLB 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: November 4, 2022
End date: November 19, 2024

a = 3.1854

b = 0.0002

s = 0.1241

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 6.53%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1241) – 1
= 64.26%

November 4, 2022 calculations

Top border of price channel:

Exp(Y745)
= Exp(a + b × X745 + 2 × s)
= Exp(a + b × 1,080 + 2 × s)
= Exp(3.1854 + 0.0002 × 1,080 + 2 × 0.1241)
= Exp(3.6207)
= $37.37

Bottom border of price channel:

Exp(Y745)
= Exp(a + b × X745 – 2 × s)
= Exp(a + b × 1,080 – 2 × s)
= Exp(3.1854 + 0.0002 × 1,080 – 2 × 0.1241)
= Exp(3.1245)
= $22.75

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(3.1854 + 0.0002 × 1,826 + 2 × 0.1241)
= Exp(3.7501)
= $42.52

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.1854 + 0.0002 × 1,826 – 2 × 0.1241)
= Exp(3.2538)
= $25.89

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 6.53% per annum.
  • PRLB price at the close of November 19, 2024 was $37.01 and was inside the primary price channel.

Secondary Trend

Start date: November 13, 2023
End date: November 19, 2024

a = 4.5990

b = -0.0007

s = 0.0772

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0007) – 1
= -21.74%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0772) – 1
= 36.19%

November 13, 2023 calculations

Top border of price channel:

Exp(Y1,001)
= Exp(a + b × X1,001 + 2 × s)
= Exp(a + b × 1,454 + 2 × s)
= Exp(4.5990 + -0.0007 × 1,454 + 2 × 0.0772)
= Exp(3.7767)
= $43.67

Bottom border of price channel:

Exp(Y1,001)
= Exp(a + b × X1,001 – 2 × s)
= Exp(a + b × 1,454 – 2 × s)
= Exp(4.5990 + -0.0007 × 1,454 – 2 × 0.0772)
= Exp(3.4678)
= $32.07

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(4.5990 + -0.0007 × 1,826 + 2 × 0.0772)
= Exp(3.5268)
= $34.01

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.5990 + -0.0007 × 1,826 – 2 × 0.0772)
= Exp(3.2179)
= $24.98

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 21.74% per annum.
  • PRLB price at the close of November 19, 2024 was higher than the top border of the secondary price channel by $3.00 (8.81%). This indicates a possible reversal in the secondary trend direction.