Stock Price Trends

Stewart Information Services Corp (STC)

Stewart Information Services Corporation offers title insurance and real estate transaction services. The company is headquartered in Houston, Texas.

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 55.64% per annum.
  • STC price at the close of November 19, 2024 was $73.03 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 33.07% per annum.
  • STC 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 STC 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 2, 2023
End date: November 19, 2024

a = 2.1324

b = 0.0012

s = 0.0680

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0012) – 1
= 55.64%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0680) – 1
= 31.25%

March 2, 2023 calculations

Top border of price channel:

Exp(Y824)
= Exp(a + b × X824 + 2 × s)
= Exp(a + b × 1,198 + 2 × s)
= Exp(2.1324 + 0.0012 × 1,198 + 2 × 0.0680)
= Exp(3.7204)
= $41.28

Bottom border of price channel:

Exp(Y824)
= Exp(a + b × X824 – 2 × s)
= Exp(a + b × 1,198 – 2 × s)
= Exp(2.1324 + 0.0012 × 1,198 – 2 × 0.0680)
= Exp(3.4484)
= $31.45

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(2.1324 + 0.0012 × 1,826 + 2 × 0.0680)
= Exp(4.4815)
= $88.37

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.1324 + 0.0012 × 1,826 – 2 × 0.0680)
= Exp(4.2096)
= $67.33

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 55.64% per annum.
  • STC price at the close of November 19, 2024 was $73.03 and was inside the primary price channel.

Secondary Trend

Start date: December 14, 2023
End date: November 19, 2024

a = 2.8667

b = 0.0008

s = 0.0397

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 33.07%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0397) – 1
= 17.20%

December 14, 2023 calculations

Top border of price channel:

Exp(Y1,023)
= Exp(a + b × X1,023 + 2 × s)
= Exp(a + b × 1,485 + 2 × s)
= Exp(2.8667 + 0.0008 × 1,485 + 2 × 0.0397)
= Exp(4.1084)
= $60.85

Bottom border of price channel:

Exp(Y1,023)
= Exp(a + b × X1,023 – 2 × s)
= Exp(a + b × 1,485 – 2 × s)
= Exp(2.8667 + 0.0008 × 1,485 – 2 × 0.0397)
= Exp(3.9497)
= $51.92

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(2.8667 + 0.0008 × 1,826 + 2 × 0.0397)
= Exp(4.3753)
= $79.46

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.8667 + 0.0008 × 1,826 – 2 × 0.0397)
= Exp(4.2166)
= $67.80

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 33.07% per annum.
  • STC price at the close of November 19, 2024 was inside the secondary price channel.