Stock Price Trends

Wex Inc (WEX)

WEX Inc. offers financial technology services in North America, Asia Pacific, and Europe. The company is headquartered in Portland, Maine.

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 16.52% per annum.
  • WEX price at the close of November 19, 2024 was $178.38 and was lower than the bottom border of the primary price channel by $17.11 (8.75%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 36.57% per annum.
  • WEX price at the close of November 19, 2024 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 WEX 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: October 29, 2021
End date: May 17, 2024

a = 4.6701

b = 0.0004

s = 0.0797

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.52%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0797) – 1
= 37.56%

October 29, 2021 calculations

Top border of price channel:

Exp(Y489)
= Exp(a + b × X489 + 2 × s)
= Exp(a + b × 709 + 2 × s)
= Exp(4.6701 + 0.0004 × 709 + 2 × 0.0797)
= Exp(5.1265)
= $168.43

Bottom border of price channel:

Exp(Y489)
= Exp(a + b × X489 – 2 × s)
= Exp(a + b × 709 – 2 × s)
= Exp(4.6701 + 0.0004 × 709 – 2 × 0.0797)
= Exp(4.8076)
= $122.44

May 17, 2024 calculations

Top border of price channel:

Exp(Y1,129)
= Exp(a + b × X1,129 + 2 × s)
= Exp(a + b × 1,640 + 2 × s)
= Exp(4.6701 + 0.0004 × 1,640 + 2 × 0.0797)
= Exp(5.5165)
= $248.76

Bottom border of price channel:

Exp(Y1,129)
= Exp(a + b × X1,129 – 2 × s)
= Exp(a + b × 1,640 – 2 × s)
= Exp(4.6701 + 0.0004 × 1,640 – 2 × 0.0797)
= Exp(5.1976)
= $180.84

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 16.52% per annum.
  • WEX price at the close of November 19, 2024 was $178.38 and was lower than the bottom border of the primary price channel by $17.11 (8.75%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: January 22, 2024
End date: September 6, 2024

a = 7.3440

b = -0.0012

s = 0.0746

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -36.57%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0746) – 1
= 34.79%

January 22, 2024 calculations

Top border of price channel:

Exp(Y1,047)
= Exp(a + b × X1,047 + 2 × s)
= Exp(a + b × 1,524 + 2 × s)
= Exp(7.3440 + -0.0012 × 1,524 + 2 × 0.0746)
= Exp(5.5923)
= $268.36

Bottom border of price channel:

Exp(Y1,047)
= Exp(a + b × X1,047 – 2 × s)
= Exp(a + b × 1,524 – 2 × s)
= Exp(7.3440 + -0.0012 × 1,524 – 2 × 0.0746)
= Exp(5.2938)
= $199.09

September 6, 2024 calculations

Top border of price channel:

Exp(Y1,205)
= Exp(a + b × X1,205 + 2 × s)
= Exp(a + b × 1,752 + 2 × s)
= Exp(7.3440 + -0.0012 × 1,752 + 2 × 0.0746)
= Exp(5.3080)
= $201.94

Bottom border of price channel:

Exp(Y1,205)
= Exp(a + b × X1,205 – 2 × s)
= Exp(a + b × 1,752 – 2 × s)
= Exp(7.3440 + -0.0012 × 1,752 – 2 × 0.0746)
= Exp(5.0094)
= $149.81

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 36.57% per annum.
  • WEX price at the close of November 19, 2024 was inside the secondary price channel.