Stock Price Trends

Dollar Tree Inc (DLTR)

Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.

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 68.46% per annum.
  • DLTR price at the close of November 20, 2024 was $63.18 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 39.15% per annum.
  • DLTR 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 DLTR 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: February 8, 2024
End date: November 20, 2024

a = 9.9287

b = -0.0032

s = 0.0754

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0032) – 1
= -68.46%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0754) – 1
= 35.21%

February 8, 2024 calculations

Top border of price channel:

Exp(Y1,059)
= Exp(a + b × X1,059 + 2 × s)
= Exp(a + b × 1,540 + 2 × s)
= Exp(9.9287 + -0.0032 × 1,540 + 2 × 0.0754)
= Exp(5.2116)
= $183.39

Bottom border of price channel:

Exp(Y1,059)
= Exp(a + b × X1,059 – 2 × s)
= Exp(a + b × 1,540 – 2 × s)
= Exp(9.9287 + -0.0032 × 1,540 – 2 × 0.0754)
= Exp(4.9099)
= $135.63

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(9.9287 + -0.0032 × 1,826 + 2 × 0.0754)
= Exp(4.3075)
= $74.26

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(9.9287 + -0.0032 × 1,826 – 2 × 0.0754)
= Exp(4.0059)
= $54.92

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 68.46% per annum.
  • DLTR price at the close of November 20, 2024 was $63.18 and was inside the primary price channel.

Secondary Trend

Start date: September 4, 2024
End date: November 20, 2024

a = 6.6467

b = -0.0014

s = 0.0376

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0014) – 1
= -39.15%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0376) – 1
= 16.25%

September 4, 2024 calculations

Top border of price channel:

Exp(Y1,202)
= Exp(a + b × X1,202 + 2 × s)
= Exp(a + b × 1,749 + 2 × s)
= Exp(6.6467 + -0.0014 × 1,749 + 2 × 0.0376)
= Exp(4.3415)
= $76.82

Bottom border of price channel:

Exp(Y1,202)
= Exp(a + b × X1,202 – 2 × s)
= Exp(a + b × 1,749 – 2 × s)
= Exp(6.6467 + -0.0014 × 1,749 – 2 × 0.0376)
= Exp(4.1909)
= $66.08

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(6.6467 + -0.0014 × 1,826 + 2 × 0.0376)
= Exp(4.2367)
= $69.18

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(6.6467 + -0.0014 × 1,826 – 2 × 0.0376)
= Exp(4.0861)
= $59.51

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 39.15% per annum.
  • DLTR price at the close of November 20, 2024 was inside the secondary price channel.