Stock Price Trends

Solventum Corp. (SOLV)

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. The company is headquartered in Saint Paul, Minnesota.

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 77.71% per annum.
  • SOLV price at the close of April 24, 2025 was $67.53 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 3.08% per annum.
  • SOLV price at the close of April 24, 2025 was inside the secondary price channel.
  • 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 SOLV 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: February 25, 2025
End date: April 24, 2025

a = 5.7863

b = -0.0041

s = 0.0363

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0041) – 1
= -77.71%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0363) – 1
= 15.63%

February 25, 2025 calculations

Top border of price channel:

Exp(Y229)
= Exp(a + b × X229 + 2 × s)
= Exp(a + b × 336 + 2 × s)
= Exp(5.7863 + -0.0041 × 336 + 2 × 0.0363)
= Exp(4.4771)
= $87.98

Bottom border of price channel:

Exp(Y229)
= Exp(a + b × X229 – 2 × s)
= Exp(a + b × 336 – 2 × s)
= Exp(5.7863 + -0.0041 × 336 – 2 × 0.0363)
= Exp(4.3319)
= $76.09

April 24, 2025 calculations

Top border of price channel:

Exp(Y270)
= Exp(a + b × X270 + 2 × s)
= Exp(a + b × 394 + 2 × s)
= Exp(5.7863 + -0.0041 × 394 + 2 × 0.0363)
= Exp(4.2386)
= $69.31

Bottom border of price channel:

Exp(Y270)
= Exp(a + b × X270 – 2 × s)
= Exp(a + b × 394 – 2 × s)
= Exp(5.7863 + -0.0041 × 394 – 2 × 0.0363)
= Exp(4.0934)
= $59.94

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 77.71% per annum.
  • SOLV price at the close of April 24, 2025 was $67.53 and was inside the primary price channel.

Secondary Trend

Start date: April 4, 2025
End date: April 24, 2025

a = 4.1558

b = 0.0001

s = 0.0231

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 3.08%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0231) – 1
= 9.69%

April 4, 2025 calculations

Top border of price channel:

Exp(Y257)
= Exp(a + b × X257 + 2 × s)
= Exp(a + b × 374 + 2 × s)
= Exp(4.1558 + 0.0001 × 374 + 2 × 0.0231)
= Exp(4.2331)
= $68.93

Bottom border of price channel:

Exp(Y257)
= Exp(a + b × X257 – 2 × s)
= Exp(a + b × 374 – 2 × s)
= Exp(4.1558 + 0.0001 × 374 – 2 × 0.0231)
= Exp(4.1406)
= $62.84

April 24, 2025 calculations

Top border of price channel:

Exp(Y270)
= Exp(a + b × X270 + 2 × s)
= Exp(a + b × 394 + 2 × s)
= Exp(4.1558 + 0.0001 × 394 + 2 × 0.0231)
= Exp(4.2348)
= $69.05

Bottom border of price channel:

Exp(Y270)
= Exp(a + b × X270 – 2 × s)
= Exp(a + b × 394 – 2 × s)
= Exp(4.1558 + 0.0001 × 394 – 2 × 0.0231)
= Exp(4.1423)
= $62.95

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 3.08% per annum.
  • SOLV price at the close of April 24, 2025 was inside the secondary price channel.