Watts Water Technologies Inc (WTS)
Watts Water Technologies, Inc. designs, manufactures and sells products and systems that manage and conserve the flow of fluids and energy to, through and from buildings in the commercial and residential markets of the Americas, Europe, Asia-Pacific, the Middle East and Africa. . The company is headquartered in North Andover, Massachusetts.
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 2.16% per annum.
- WTS price at the close of November 19, 2024 was $207.70 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 30.76% per annum.
- WTS 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 WTS 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: November 14, 2023
End date: November 5, 2024
a = 5.3878
b = -0.0001
s = 0.0430
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -2.16%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0430) – 1
= 18.77%
November 14, 2023 calculations
Top border of price channel:
Exp(Y1,002)
= Exp(a + b × X1,002 + 2 × s)
= Exp(a + b × 1,455 + 2 × s)
= Exp(5.3878 + -0.0001 × 1,455 + 2 × 0.0430)
= Exp(5.3868)
= $218.51
Bottom border of price channel:
Exp(Y1,002)
= Exp(a + b × X1,002 – 2 × s)
= Exp(a + b × 1,455 – 2 × s)
= Exp(5.3878 + -0.0001 × 1,455 – 2 × 0.0430)
= Exp(5.2148)
= $183.98
November 5, 2024 calculations
Top border of price channel:
Exp(Y1,247)
= Exp(a + b × X1,247 + 2 × s)
= Exp(a + b × 1,812 + 2 × s)
= Exp(5.3878 + -0.0001 × 1,812 + 2 × 0.0430)
= Exp(5.3655)
= $213.90
Bottom border of price channel:
Exp(Y1,247)
= Exp(a + b × X1,247 – 2 × s)
= Exp(a + b × 1,812 – 2 × s)
= Exp(5.3878 + -0.0001 × 1,812 – 2 × 0.0430)
= Exp(5.1935)
= $180.09
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 2.16% per annum.
- WTS price at the close of November 19, 2024 was $207.70 and was inside the primary price channel.
Secondary Trend
Start date: June 6, 2024
End date: November 19, 2024
a = 3.9933
b = 0.0007
s = 0.0354
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 30.76%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0354) – 1
= 15.23%
June 6, 2024 calculations
Top border of price channel:
Exp(Y1,142)
= Exp(a + b × X1,142 + 2 × s)
= Exp(a + b × 1,660 + 2 × s)
= Exp(3.9933 + 0.0007 × 1,660 + 2 × 0.0354)
= Exp(5.2841)
= $197.18
Bottom border of price channel:
Exp(Y1,142)
= Exp(a + b × X1,142 – 2 × s)
= Exp(a + b × 1,660 – 2 × s)
= Exp(3.9933 + 0.0007 × 1,660 – 2 × 0.0354)
= Exp(5.1423)
= $171.12
November 19, 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(3.9933 + 0.0007 × 1,826 + 2 × 0.0354)
= Exp(5.4061)
= $222.76
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.9933 + 0.0007 × 1,826 – 2 × 0.0354)
= Exp(5.2643)
= $193.32
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 30.76% per annum.
- WTS price at the close of November 19, 2024 was inside the secondary price channel.