Stock Price Trends

STERIS plc (STE)

Steris Corporation is an American Irish-domiciled medical equipment company specializing in sterilization and surgical products for the US healthcare system.

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 6.89% per annum.
  • STE price at the close of April 17, 2025 was $222.23 and was higher than the top border of the primary price channel by $27.42 (14.07%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 14.35% per annum.
  • STE price at the close of April 17, 2025 was lower than the bottom border of the secondary price channel by $1.11 (0.49%). 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 STE 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: April 9, 2021
End date: June 1, 2023

a = 5.4509

b = -0.0002

s = 0.0889

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -6.89%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0889) – 1
= 42.69%

April 9, 2021 calculations

Top border of price channel:

Exp(Y244)
= Exp(a + b × X244 + 2 × s)
= Exp(a + b × 353 + 2 × s)
= Exp(5.4509 + -0.0002 × 353 + 2 × 0.0889)
= Exp(5.5595)
= $259.70

Bottom border of price channel:

Exp(Y244)
= Exp(a + b × X244 – 2 × s)
= Exp(a + b × 353 – 2 × s)
= Exp(5.4509 + -0.0002 × 353 – 2 × 0.0889)
= Exp(5.2040)
= $182.00

June 1, 2023 calculations

Top border of price channel:

Exp(Y784)
= Exp(a + b × X784 + 2 × s)
= Exp(a + b × 1,136 + 2 × s)
= Exp(5.4509 + -0.0002 × 1,136 + 2 × 0.0889)
= Exp(5.4063)
= $222.81

Bottom border of price channel:

Exp(Y784)
= Exp(a + b × X784 – 2 × s)
= Exp(a + b × 1,136 – 2 × s)
= Exp(5.4509 + -0.0002 × 1,136 – 2 × 0.0889)
= Exp(5.0508)
= $156.14

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 6.89% per annum.
  • STE price at the close of April 17, 2025 was $222.23 and was higher than the top border of the primary price channel by $27.42 (14.07%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: August 26, 2022
End date: November 6, 2024

a = 4.8660

b = 0.0004

s = 0.0632

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 14.35%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0632) – 1
= 28.79%

August 26, 2022 calculations

Top border of price channel:

Exp(Y593)
= Exp(a + b × X593 + 2 × s)
= Exp(a + b × 857 + 2 × s)
= Exp(4.8660 + 0.0004 × 857 + 2 × 0.0632)
= Exp(5.3072)
= $201.79

Bottom border of price channel:

Exp(Y593)
= Exp(a + b × X593 – 2 × s)
= Exp(a + b × 857 – 2 × s)
= Exp(4.8660 + 0.0004 × 857 – 2 × 0.0632)
= Exp(5.0543)
= $156.69

November 6, 2024 calculations

Top border of price channel:

Exp(Y1,145)
= Exp(a + b × X1,145 + 2 × s)
= Exp(a + b × 1,660 + 2 × s)
= Exp(4.8660 + 0.0004 × 1,660 + 2 × 0.0632)
= Exp(5.6021)
= $271.01

Bottom border of price channel:

Exp(Y1,145)
= Exp(a + b × X1,145 – 2 × s)
= Exp(a + b × 1,660 – 2 × s)
= Exp(4.8660 + 0.0004 × 1,660 – 2 × 0.0632)
= Exp(5.3492)
= $210.43

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 14.35% per annum.
  • STE price at the close of April 17, 2025 was lower than the bottom border of the secondary price channel by $1.11 (0.49%). This indicates a possible reversal in the secondary trend direction.