Stock Price Trends

Encore Capital Group Inc (ECPG)

Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.

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 11.24% per annum.
  • ECPG price at the close of November 19, 2024 was $48.62 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 4.59% per annum.
  • ECPG 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 ECPG 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 4, 2021
End date: November 5, 2024

a = 4.3475

b = -0.0003

s = 0.0840

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -11.24%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0840) – 1
= 39.92%

November 4, 2021 calculations

Top border of price channel:

Exp(Y493)
= Exp(a + b × X493 + 2 × s)
= Exp(a + b × 715 + 2 × s)
= Exp(4.3475 + -0.0003 × 715 + 2 × 0.0840)
= Exp(4.2817)
= $72.37

Bottom border of price channel:

Exp(Y493)
= Exp(a + b × X493 – 2 × s)
= Exp(a + b × 715 – 2 × s)
= Exp(4.3475 + -0.0003 × 715 – 2 × 0.0840)
= Exp(3.9459)
= $51.72

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(4.3475 + -0.0003 × 1,812 + 2 × 0.0840)
= Exp(3.9232)
= $50.56

Bottom border of price channel:

Exp(Y1,247)
= Exp(a + b × X1,247 – 2 × s)
= Exp(a + b × 1,812 – 2 × s)
= Exp(4.3475 + -0.0003 × 1,812 – 2 × 0.0840)
= Exp(3.5873)
= $36.14

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 11.24% per annum.
  • ECPG price at the close of November 19, 2024 was $48.62 and was inside the primary price channel.

Secondary Trend

Start date: September 7, 2022
End date: November 19, 2024

a = 4.0492

b = -0.0001

s = 0.0696

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -4.59%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0696) – 1
= 32.08%

September 7, 2022 calculations

Top border of price channel:

Exp(Y703)
= Exp(a + b × X703 + 2 × s)
= Exp(a + b × 1,022 + 2 × s)
= Exp(4.0492 + -0.0001 × 1,022 + 2 × 0.0696)
= Exp(4.0569)
= $57.80

Bottom border of price channel:

Exp(Y703)
= Exp(a + b × X703 – 2 × s)
= Exp(a + b × 1,022 – 2 × s)
= Exp(4.0492 + -0.0001 × 1,022 – 2 × 0.0696)
= Exp(3.7786)
= $43.76

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(4.0492 + -0.0001 × 1,826 + 2 × 0.0696)
= Exp(3.9535)
= $52.12

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.0492 + -0.0001 × 1,826 – 2 × 0.0696)
= Exp(3.6752)
= $39.46

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 4.59% per annum.
  • ECPG price at the close of November 19, 2024 was inside the secondary price channel.