Bank of America Corp (BAC)
The Bank of America Corporation is an American multinational investment bank and financial services holding company headquartered in Charlotte, North Carolina. Founded in San Francisco, Bank of America was formed through NationsBank's acquisition of BankAmerica in 1998. It is the second largest banking institution in the United States, after JPMorgan Chase, and the eighth largest bank in the world. Bank of America is one of the Big Four banking institutions of the United States. It services approximately 10 percent of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup and Wells Fargo. Its primary financial services revolve around commercial banking, wealth management, and investment banking.
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 69.25% per annum.
- BAC price at the close of November 19, 2024 was $46.41 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 35.33% per annum.
- BAC price at the close of November 19, 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 BAC 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 16, 2023
End date: July 31, 2024
a = 1.2755
b = 0.0014
s = 0.0449
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0014) – 1
= 69.25%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0449) – 1
= 19.69%
August 16, 2023 calculations
Top border of price channel:
Exp(Y939)
= Exp(a + b × X939 + 2 × s)
= Exp(a + b × 1,365 + 2 × s)
= Exp(1.2755 + 0.0014 × 1,365 + 2 × 0.0449)
= Exp(3.3331)
= $28.03
Bottom border of price channel:
Exp(Y939)
= Exp(a + b × X939 – 2 × s)
= Exp(a + b × 1,365 – 2 × s)
= Exp(1.2755 + 0.0014 × 1,365 – 2 × 0.0449)
= Exp(3.1534)
= $23.42
July 31, 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(1.2755 + 0.0014 × 1,715 + 2 × 0.0449)
= Exp(3.8377)
= $46.42
Bottom border of price channel:
Exp(Y1,179)
= Exp(a + b × X1,179 – 2 × s)
= Exp(a + b × 1,715 – 2 × s)
= Exp(1.2755 + 0.0014 × 1,715 – 2 × 0.0449)
= Exp(3.6580)
= $38.78
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 69.25% per annum.
- BAC price at the close of November 19, 2024 was $46.41 and was inside the primary price channel.
Secondary Trend
Start date: December 13, 2023
End date: November 5, 2024
a = 2.2525
b = 0.0008
s = 0.0387
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 35.33%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0387) – 1
= 16.75%
December 13, 2023 calculations
Top border of price channel:
Exp(Y1,022)
= Exp(a + b × X1,022 + 2 × s)
= Exp(a + b × 1,484 + 2 × s)
= Exp(2.2525 + 0.0008 × 1,484 + 2 × 0.0387)
= Exp(3.5599)
= $35.16
Bottom border of price channel:
Exp(Y1,022)
= Exp(a + b × X1,022 – 2 × s)
= Exp(a + b × 1,484 – 2 × s)
= Exp(2.2525 + 0.0008 × 1,484 – 2 × 0.0387)
= Exp(3.4051)
= $30.12
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(2.2525 + 0.0008 × 1,812 + 2 × 0.0387)
= Exp(3.8318)
= $46.15
Bottom border of price channel:
Exp(Y1,247)
= Exp(a + b × X1,247 – 2 × s)
= Exp(a + b × 1,812 – 2 × s)
= Exp(2.2525 + 0.0008 × 1,812 – 2 × 0.0387)
= Exp(3.6770)
= $39.53
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 35.33% per annum.
- BAC price at the close of November 19, 2024 was inside the secondary price channel.