Stock Price Trends

Sensient Technologies Corporation (SXT)

Sensient Technologies Corporation develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia Pacific, and internationally. The company is headquartered in Milwaukee, Wisconsin.

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 55.52% per annum.
  • SXT price at the close of November 20, 2024 was $76.31 and was lower than the bottom border of the primary price channel by $7.87 (9.35%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 9.26% per annum.
  • SXT price at the close of November 20, 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 SXT 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 21, 2023
End date: August 1, 2024

a = 2.2933

b = 0.0012

s = 0.0348

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0012) – 1
= 55.52%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0348) – 1
= 14.94%

September 21, 2023 calculations

Top border of price channel:

Exp(Y963)
= Exp(a + b × X963 + 2 × s)
= Exp(a + b × 1,400 + 2 × s)
= Exp(2.2933 + 0.0012 × 1,400 + 2 × 0.0348)
= Exp(4.0568)
= $57.79

Bottom border of price channel:

Exp(Y963)
= Exp(a + b × X963 – 2 × s)
= Exp(a + b × 1,400 – 2 × s)
= Exp(2.2933 + 0.0012 × 1,400 – 2 × 0.0348)
= Exp(3.9176)
= $50.28

August 1, 2024 calculations

Top border of price channel:

Exp(Y1,179)
= Exp(a + b × X1,179 + 2 × s)
= Exp(a + b × 1,715 + 2 × s)
= Exp(2.2933 + 0.0012 × 1,715 + 2 × 0.0348)
= Exp(4.4379)
= $84.60

Bottom border of price channel:

Exp(Y1,179)
= Exp(a + b × X1,179 – 2 × s)
= Exp(a + b × 1,715 – 2 × s)
= Exp(2.2933 + 0.0012 × 1,715 – 2 × 0.0348)
= Exp(4.2987)
= $73.60

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 55.52% per annum.
  • SXT price at the close of November 20, 2024 was $76.31 and was lower than the bottom border of the primary price channel by $7.87 (9.35%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: April 29, 2024
End date: November 20, 2024

a = 3.9067

b = 0.0002

s = 0.0287

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 9.26%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0287) – 1
= 12.17%

April 29, 2024 calculations

Top border of price channel:

Exp(Y1,114)
= Exp(a + b × X1,114 + 2 × s)
= Exp(a + b × 1,621 + 2 × s)
= Exp(3.9067 + 0.0002 × 1,621 + 2 × 0.0287)
= Exp(4.3575)
= $78.07

Bottom border of price channel:

Exp(Y1,114)
= Exp(a + b × X1,114 – 2 × s)
= Exp(a + b × 1,621 – 2 × s)
= Exp(3.9067 + 0.0002 × 1,621 – 2 × 0.0287)
= Exp(4.2427)
= $69.59

November 20, 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(3.9067 + 0.0002 × 1,826 + 2 × 0.0287)
= Exp(4.4073)
= $82.05

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.9067 + 0.0002 × 1,826 – 2 × 0.0287)
= Exp(4.2924)
= $73.14

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 9.26% per annum.
  • SXT price at the close of November 20, 2024 was inside the secondary price channel.