Prudential Financial Inc (PRU)
Prudential Financial, Inc. is an American company whose subsidiaries provide insurance, investment management, and other financial products and services to both retail and institutional customers throughout the United States and in over 40 other countries.
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 44.04% per annum.
- PRU price at the close of November 19, 2024 was $124.61 and was lower than the bottom border of the primary price channel by $1.92 (1.51%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 21.11% per annum.
- PRU price at the close of November 19, 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 PRU 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: March 13, 2023
End date: August 1, 2024
a = 3.0846
b = 0.0010
s = 0.0349
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 44.04%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0349) – 1
= 14.98%
March 13, 2023 calculations
Top border of price channel:
Exp(Y831)
= Exp(a + b × X831 + 2 × s)
= Exp(a + b × 1,209 + 2 × s)
= Exp(3.0846 + 0.0010 × 1,209 + 2 × 0.0349)
= Exp(4.3632)
= $78.50
Bottom border of price channel:
Exp(Y831)
= Exp(a + b × X831 – 2 × s)
= Exp(a + b × 1,209 – 2 × s)
= Exp(3.0846 + 0.0010 × 1,209 – 2 × 0.0349)
= Exp(4.2236)
= $68.28
August 1, 2024 calculations
Top border of price channel:
Exp(Y1,180)
= Exp(a + b × X1,180 + 2 × s)
= Exp(a + b × 1,716 + 2 × s)
= Exp(3.0846 + 0.0010 × 1,716 + 2 × 0.0349)
= Exp(4.8701)
= $130.33
Bottom border of price channel:
Exp(Y1,180)
= Exp(a + b × X1,180 – 2 × s)
= Exp(a + b × 1,716 – 2 × s)
= Exp(3.0846 + 0.0010 × 1,716 – 2 × 0.0349)
= Exp(4.7305)
= $113.35
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 44.04% per annum.
- PRU price at the close of November 19, 2024 was $124.61 and was lower than the bottom border of the primary price channel by $1.92 (1.51%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: February 15, 2024
End date: November 19, 2024
a = 3.8560
b = 0.0005
s = 0.0350
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 21.11%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0350) – 1
= 15.02%
February 15, 2024 calculations
Top border of price channel:
Exp(Y1,065)
= Exp(a + b × X1,065 + 2 × s)
= Exp(a + b × 1,548 + 2 × s)
= Exp(3.8560 + 0.0005 × 1,548 + 2 × 0.0350)
= Exp(4.7382)
= $114.23
Bottom border of price channel:
Exp(Y1,065)
= Exp(a + b × X1,065 – 2 × s)
= Exp(a + b × 1,548 – 2 × s)
= Exp(3.8560 + 0.0005 × 1,548 – 2 × 0.0350)
= Exp(4.5983)
= $99.31
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(3.8560 + 0.0005 × 1,826 + 2 × 0.0350)
= Exp(4.8841)
= $132.17
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.8560 + 0.0005 × 1,826 – 2 × 0.0350)
= Exp(4.7442)
= $114.91
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 21.11% per annum.
- PRU price at the close of November 19, 2024 was inside the secondary price channel.