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 increasing.
- The growth rate of the primary trend is 205.15% per annum.
- SOLV price at the close of November 19, 2024 was $67.05 and was lower than the bottom border of the primary price channel by $6.07 (8.30%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 95.09% per annum.
- SOLV price at the close of November 19, 2024 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 18, 2024
End date: November 7, 2024
a = 3.6500
b = 0.0031
s = 0.0426
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0031) – 1
= 205.15%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0426) – 1
= 18.60%
June 18, 2024 calculations
Top border of price channel:
Exp(Y58)
= Exp(a + b × X58 + 2 × s)
= Exp(a + b × 84 + 2 × s)
= Exp(3.6500 + 0.0031 × 84 + 2 × 0.0426)
= Exp(3.9920)
= $54.16
Bottom border of price channel:
Exp(Y58)
= Exp(a + b × X58 – 2 × s)
= Exp(a + b × 84 – 2 × s)
= Exp(3.6500 + 0.0031 × 84 – 2 × 0.0426)
= Exp(3.8214)
= $45.67
November 7, 2024 calculations
Top border of price channel:
Exp(Y157)
= Exp(a + b × X157 + 2 × s)
= Exp(a + b × 226 + 2 × s)
= Exp(3.6500 + 0.0031 × 226 + 2 × 0.0426)
= Exp(4.4260)
= $83.60
Bottom border of price channel:
Exp(Y157)
= Exp(a + b × X157 – 2 × s)
= Exp(a + b × 226 – 2 × s)
= Exp(3.6500 + 0.0031 × 226 – 2 × 0.0426)
= Exp(4.2555)
= $70.49
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 205.15% per annum.
- SOLV price at the close of November 19, 2024 was $67.05 and was lower than the bottom border of the primary price channel by $6.07 (8.30%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: November 5, 2024
End date: November 19, 2024
a = 6.1608
b = -0.0083
s = 0.0141
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0083) – 1
= -95.09%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0141) – 1
= 5.79%
November 5, 2024 calculations
Top border of price channel:
Exp(Y155)
= Exp(a + b × X155 + 2 × s)
= Exp(a + b × 224 + 2 × s)
= Exp(6.1608 + -0.0083 × 224 + 2 × 0.0141)
= Exp(4.3392)
= $76.65
Bottom border of price channel:
Exp(Y155)
= Exp(a + b × X155 – 2 × s)
= Exp(a + b × 224 – 2 × s)
= Exp(6.1608 + -0.0083 × 224 – 2 × 0.0141)
= Exp(4.2829)
= $72.45
November 19, 2024 calculations
Top border of price channel:
Exp(Y165)
= Exp(a + b × X165 + 2 × s)
= Exp(a + b × 238 + 2 × s)
= Exp(6.1608 + -0.0083 × 238 + 2 × 0.0141)
= Exp(4.2236)
= $68.28
Bottom border of price channel:
Exp(Y165)
= Exp(a + b × X165 – 2 × s)
= Exp(a + b × 238 – 2 × s)
= Exp(6.1608 + -0.0083 × 238 – 2 × 0.0141)
= Exp(4.1673)
= $64.54
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 95.09% per annum.
- SOLV price at the close of November 19, 2024 was inside the secondary price channel.