Stock Price Trends

SolarWinds Corp (SWI)

SolarWinds Corporation offers information technology (IT) infrastructure management software products in the United States and internationally. The company is headquartered in Austin, 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 29.35% per annum.
  • SWI price at the close of October 21, 2024 was $12.91 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 22.16% per annum.
  • SWI price at the close of October 21, 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 SWI 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: September 1, 2022
End date: October 21, 2024

a = 1.2686

b = 0.0007

s = 0.0659

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 29.35%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0659) – 1
= 30.14%

September 1, 2022 calculations

Top border of price channel:

Exp(Y721)
= Exp(a + b × X721 + 2 × s)
= Exp(a + b × 1,045 + 2 × s)
= Exp(1.2686 + 0.0007 × 1,045 + 2 × 0.0659)
= Exp(2.1370)
= $8.47

Bottom border of price channel:

Exp(Y721)
= Exp(a + b × X721 – 2 × s)
= Exp(a + b × 1,045 – 2 × s)
= Exp(1.2686 + 0.0007 × 1,045 – 2 × 0.0659)
= Exp(1.8736)
= $6.51

October 21, 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(1.2686 + 0.0007 × 1,826 + 2 × 0.0659)
= Exp(2.6877)
= $14.70

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.2686 + 0.0007 × 1,826 – 2 × 0.0659)
= Exp(2.4242)
= $11.29

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 29.35% per annum.
  • SWI price at the close of October 21, 2024 was $12.91 and was inside the primary price channel.

Secondary Trend

Start date: November 10, 2023
End date: October 21, 2024

a = 1.5441

b = 0.0005

s = 0.0305

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 22.16%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0305) – 1
= 12.97%

November 10, 2023 calculations

Top border of price channel:

Exp(Y1,021)
= Exp(a + b × X1,021 + 2 × s)
= Exp(a + b × 1,480 + 2 × s)
= Exp(1.5441 + 0.0005 × 1,480 + 2 × 0.0305)
= Exp(2.4165)
= $11.21

Bottom border of price channel:

Exp(Y1,021)
= Exp(a + b × X1,021 – 2 × s)
= Exp(a + b × 1,480 – 2 × s)
= Exp(1.5441 + 0.0005 × 1,480 – 2 × 0.0305)
= Exp(2.2946)
= $9.92

October 21, 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(1.5441 + 0.0005 × 1,826 + 2 × 0.0305)
= Exp(2.6062)
= $13.55

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.5441 + 0.0005 × 1,826 – 2 × 0.0305)
= Exp(2.4843)
= $11.99

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 22.16% per annum.
  • SWI price at the close of October 21, 2024 was inside the secondary price channel.