ResMed Inc (RMD)
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
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 59.98% per annum.
- RMD price at the close of January 27, 2025 was $254.70 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 10.07% per annum.
- RMD price at the close of January 27, 2025 was higher than the top border of the secondary price channel by $8.55 (3.48%). 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 RMD 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: September 1, 2023
End date: December 17, 2024
a = 3.2656
b = 0.0013
s = 0.0550
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 59.98%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0550) – 1
= 24.60%
September 1, 2023 calculations
Top border of price channel:
Exp(Y906)
= Exp(a + b × X906 + 2 × s)
= Exp(a + b × 1,312 + 2 × s)
= Exp(3.2656 + 0.0013 × 1,312 + 2 × 0.0550)
= Exp(5.0646)
= $158.32
Bottom border of price channel:
Exp(Y906)
= Exp(a + b × X906 – 2 × s)
= Exp(a + b × 1,312 – 2 × s)
= Exp(3.2656 + 0.0013 × 1,312 – 2 × 0.0550)
= Exp(4.8447)
= $127.07
December 17, 2024 calculations
Top border of price channel:
Exp(Y1,231)
= Exp(a + b × X1,231 + 2 × s)
= Exp(a + b × 1,785 + 2 × s)
= Exp(3.2656 + 0.0013 × 1,785 + 2 × 0.0550)
= Exp(5.6736)
= $291.07
Bottom border of price channel:
Exp(Y1,231)
= Exp(a + b × X1,231 – 2 × s)
= Exp(a + b × 1,785 – 2 × s)
= Exp(3.2656 + 0.0013 × 1,785 – 2 × 0.0550)
= Exp(5.4536)
= $233.61
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 59.98% per annum.
- RMD price at the close of January 27, 2025 was $254.70 and was inside the primary price channel.
Secondary Trend
Start date: August 27, 2024
End date: January 17, 2025
a = 5.9912
b = -0.0003
s = 0.0229
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.07%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0229) – 1
= 9.60%
August 27, 2024 calculations
Top border of price channel:
Exp(Y1,153)
= Exp(a + b × X1,153 + 2 × s)
= Exp(a + b × 1,673 + 2 × s)
= Exp(5.9912 + -0.0003 × 1,673 + 2 × 0.0229)
= Exp(5.5504)
= $257.35
Bottom border of price channel:
Exp(Y1,153)
= Exp(a + b × X1,153 – 2 × s)
= Exp(a + b × 1,673 – 2 × s)
= Exp(5.9912 + -0.0003 × 1,673 – 2 × 0.0229)
= Exp(5.4588)
= $234.81
January 17, 2025 calculations
Top border of price channel:
Exp(Y1,251)
= Exp(a + b × X1,251 + 2 × s)
= Exp(a + b × 1,816 + 2 × s)
= Exp(5.9912 + -0.0003 × 1,816 + 2 × 0.0229)
= Exp(5.5088)
= $246.86
Bottom border of price channel:
Exp(Y1,251)
= Exp(a + b × X1,251 – 2 × s)
= Exp(a + b × 1,816 – 2 × s)
= Exp(5.9912 + -0.0003 × 1,816 – 2 × 0.0229)
= Exp(5.4172)
= $225.24
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 10.07% per annum.
- RMD price at the close of January 27, 2025 was higher than the top border of the secondary price channel by $8.55 (3.48%). This indicates a possible reversal in the secondary trend direction.