Stock Price Trends

Century Communities Inc (CCS)

Century Communities, Inc. is dedicated to the design, development, construction, marketing and sale of attached and attached single-family homes. The company is headquartered in Greenwood Village, Colorado.

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 44.10% per annum.
  • CCS price at the close of November 20, 2024 was $86.45 and was lower than the bottom border of the primary price channel by $2.95 (3.29%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 69.26% per annum.
  • CCS price at the close of November 20, 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 CCS 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: June 13, 2022
End date: October 21, 2024

a = 2.8423

b = 0.0010

s = 0.0885

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 44.10%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0885) – 1
= 42.46%

June 13, 2022 calculations

Top border of price channel:

Exp(Y643)
= Exp(a + b × X643 + 2 × s)
= Exp(a + b × 935 + 2 × s)
= Exp(2.8423 + 0.0010 × 935 + 2 × 0.0885)
= Exp(3.9551)
= $52.20

Bottom border of price channel:

Exp(Y643)
= Exp(a + b × X643 – 2 × s)
= Exp(a + b × 935 – 2 × s)
= Exp(2.8423 + 0.0010 × 935 – 2 × 0.0885)
= Exp(3.6012)
= $36.64

October 21, 2024 calculations

Top border of price channel:

Exp(Y1,235)
= Exp(a + b × X1,235 + 2 × s)
= Exp(a + b × 1,796 + 2 × s)
= Exp(2.8423 + 0.0010 × 1,796 + 2 × 0.0885)
= Exp(4.8170)
= $123.59

Bottom border of price channel:

Exp(Y1,235)
= Exp(a + b × X1,235 – 2 × s)
= Exp(a + b × 1,796 – 2 × s)
= Exp(2.8423 + 0.0010 × 1,796 – 2 × 0.0885)
= Exp(4.4630)
= $86.75

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 44.10% per annum.
  • CCS price at the close of November 20, 2024 was $86.45 and was lower than the bottom border of the primary price channel by $2.95 (3.29%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: September 13, 2024
End date: November 20, 2024

a = 10.3521

b = -0.0032

s = 0.0251

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0032) – 1
= -69.26%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0251) – 1
= 10.58%

September 13, 2024 calculations

Top border of price channel:

Exp(Y1,209)
= Exp(a + b × X1,209 + 2 × s)
= Exp(a + b × 1,758 + 2 × s)
= Exp(10.3521 + -0.0032 × 1,758 + 2 × 0.0251)
= Exp(4.7212)
= $112.30

Bottom border of price channel:

Exp(Y1,209)
= Exp(a + b × X1,209 – 2 × s)
= Exp(a + b × 1,758 – 2 × s)
= Exp(10.3521 + -0.0032 × 1,758 – 2 × 0.0251)
= Exp(4.6206)
= $101.56

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(10.3521 + -0.0032 × 1,826 + 2 × 0.0251)
= Exp(4.5014)
= $90.14

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(10.3521 + -0.0032 × 1,826 – 2 × 0.0251)
= Exp(4.4009)
= $81.52

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 69.26% per annum.
  • CCS price at the close of November 20, 2024 was inside the secondary price channel.