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 37.24% per annum.
  • STE price at the close of January 24, 2025 was $217.01 and was higher than the top border of the primary price channel by $9.76 (4.71%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 222.60% per annum.
  • STE price at the close of January 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 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: August 27, 2024
End date: January 15, 2025

a = 7.6298

b = -0.0013

s = 0.0159

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0013) – 1
= -37.24%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0159) – 1
= 6.56%

August 27, 2024 calculations

Top border of price channel:

Exp(Y1,154)
= Exp(a + b × X1,154 + 2 × s)
= Exp(a + b × 1,674 + 2 × s)
= Exp(7.6298 + -0.0013 × 1,674 + 2 × 0.0159)
= Exp(5.5254)
= $250.98

Bottom border of price channel:

Exp(Y1,154)
= Exp(a + b × X1,154 – 2 × s)
= Exp(a + b × 1,674 – 2 × s)
= Exp(7.6298 + -0.0013 × 1,674 – 2 × 0.0159)
= Exp(5.4618)
= $235.52

January 15, 2025 calculations

Top border of price channel:

Exp(Y1,250)
= Exp(a + b × X1,250 + 2 × s)
= Exp(a + b × 1,815 + 2 × s)
= Exp(7.6298 + -0.0013 × 1,815 + 2 × 0.0159)
= Exp(5.3454)
= $209.65

Bottom border of price channel:

Exp(Y1,250)
= Exp(a + b × X1,250 – 2 × s)
= Exp(a + b × 1,815 – 2 × s)
= Exp(7.6298 + -0.0013 × 1,815 – 2 × 0.0159)
= Exp(5.2819)
= $196.74

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 37.24% per annum.
  • STE price at the close of January 24, 2025 was $217.01 and was higher than the top border of the primary price channel by $9.76 (4.71%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: January 2, 2025
End date: January 24, 2025

a = -0.4743

b = 0.0032

s = 0.0108

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0032) – 1
= 222.60%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0108) – 1
= 4.43%

January 2, 2025 calculations

Top border of price channel:

Exp(Y1,242)
= Exp(a + b × X1,242 + 2 × s)
= Exp(a + b × 1,802 + 2 × s)
= Exp(-0.4743 + 0.0032 × 1,802 + 2 × 0.0108)
= Exp(5.3298)
= $206.40

Bottom border of price channel:

Exp(Y1,242)
= Exp(a + b × X1,242 – 2 × s)
= Exp(a + b × 1,802 – 2 × s)
= Exp(-0.4743 + 0.0032 × 1,802 – 2 × 0.0108)
= Exp(5.2865)
= $197.65

January 24, 2025 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(-0.4743 + 0.0032 × 1,824 + 2 × 0.0108)
= Exp(5.4004)
= $221.49

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(-0.4743 + 0.0032 × 1,824 – 2 × 0.0108)
= Exp(5.3571)
= $212.11

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 222.60% per annum.
  • STE price at the close of January 24, 2025 was inside the secondary price channel.