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 77.03% per annum.
  • SOLV price at the close of March 31, 2025 was $76.04 and was higher than the top border of the primary price channel by $58.55 (334.82%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 60.45% per annum.
  • SOLV price at the close of March 31, 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: June 3, 2024
End date: July 15, 2024

a = 4.3202

b = -0.0040

s = 0.0162

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0040) – 1
= -77.03%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0162) – 1
= 6.68%

June 3, 2024 calculations

Top border of price channel:

Exp(Y47)
= Exp(a + b × X47 + 2 × s)
= Exp(a + b × 69 + 2 × s)
= Exp(4.3202 + -0.0040 × 69 + 2 × 0.0162)
= Exp(4.0744)
= $58.82

Bottom border of price channel:

Exp(Y47)
= Exp(a + b × X47 – 2 × s)
= Exp(a + b × 69 – 2 × s)
= Exp(4.3202 + -0.0040 × 69 – 2 × 0.0162)
= Exp(4.0098)
= $55.14

July 15, 2024 calculations

Top border of price channel:

Exp(Y75)
= Exp(a + b × X75 + 2 × s)
= Exp(a + b × 111 + 2 × s)
= Exp(4.3202 + -0.0040 × 111 + 2 × 0.0162)
= Exp(3.9052)
= $49.66

Bottom border of price channel:

Exp(Y75)
= Exp(a + b × X75 – 2 × s)
= Exp(a + b × 111 – 2 × s)
= Exp(4.3202 + -0.0040 × 111 – 2 × 0.0162)
= Exp(3.8406)
= $46.55

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 77.03% per annum.
  • SOLV price at the close of March 31, 2025 was $76.04 and was higher than the top border of the primary price channel by $58.55 (334.82%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: June 3, 2024
End date: March 31, 2025

a = 3.9106

b = 0.0013

s = 0.0672

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 60.45%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0672) – 1
= 30.83%

June 3, 2024 calculations

Top border of price channel:

Exp(Y47)
= Exp(a + b × X47 + 2 × s)
= Exp(a + b × 69 + 2 × s)
= Exp(3.9106 + 0.0013 × 69 + 2 × 0.0672)
= Exp(4.1344)
= $62.45

Bottom border of price channel:

Exp(Y47)
= Exp(a + b × X47 – 2 × s)
= Exp(a + b × 69 – 2 × s)
= Exp(3.9106 + 0.0013 × 69 – 2 × 0.0672)
= Exp(3.8656)
= $47.73

March 31, 2025 calculations

Top border of price channel:

Exp(Y253)
= Exp(a + b × X253 + 2 × s)
= Exp(a + b × 370 + 2 × s)
= Exp(3.9106 + 0.0013 × 370 + 2 × 0.0672)
= Exp(4.5243)
= $92.23

Bottom border of price channel:

Exp(Y253)
= Exp(a + b × X253 – 2 × s)
= Exp(a + b × 370 – 2 × s)
= Exp(3.9106 + 0.0013 × 370 – 2 × 0.0672)
= Exp(4.2556)
= $70.50

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 60.45% per annum.
  • SOLV price at the close of March 31, 2025 was inside the secondary price channel.