Stock Price Trends

Enhabit Inc. (EHAB)

Enhabit, Inc. provides home health and hospice services in the United States.

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 47.08% per annum.
  • EHAB price at the close of November 19, 2024 was $7.27 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 114.60% per annum.
  • EHAB 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 EHAB 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: March 12, 2024
End date: November 5, 2024

a = 3.4756

b = -0.0017

s = 0.0645

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0017) – 1
= -47.08%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0645) – 1
= 29.41%

March 12, 2024 calculations

Top border of price channel:

Exp(Y425)
= Exp(a + b × X425 + 2 × s)
= Exp(a + b × 620 + 2 × s)
= Exp(3.4756 + -0.0017 × 620 + 2 × 0.0645)
= Exp(2.5236)
= $12.47

Bottom border of price channel:

Exp(Y425)
= Exp(a + b × X425 – 2 × s)
= Exp(a + b × 620 – 2 × s)
= Exp(3.4756 + -0.0017 × 620 – 2 × 0.0645)
= Exp(2.2658)
= $9.64

November 5, 2024 calculations

Top border of price channel:

Exp(Y590)
= Exp(a + b × X590 + 2 × s)
= Exp(a + b × 858 + 2 × s)
= Exp(3.4756 + -0.0017 × 858 + 2 × 0.0645)
= Exp(2.1087)
= $8.24

Bottom border of price channel:

Exp(Y590)
= Exp(a + b × X590 – 2 × s)
= Exp(a + b × 858 – 2 × s)
= Exp(3.4756 + -0.0017 × 858 – 2 × 0.0645)
= Exp(1.8509)
= $6.37

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 47.08% per annum.
  • EHAB price at the close of November 19, 2024 was $7.27 and was inside the primary price channel.

Secondary Trend

Start date: October 7, 2024
End date: November 14, 2024

a = 0.2178

b = 0.0021

s = 0.0350

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0021) – 1
= 114.60%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0350) – 1
= 15.03%

October 7, 2024 calculations

Top border of price channel:

Exp(Y569)
= Exp(a + b × X569 + 2 × s)
= Exp(a + b × 829 + 2 × s)
= Exp(0.2178 + 0.0021 × 829 + 2 × 0.0350)
= Exp(2.0221)
= $7.55

Bottom border of price channel:

Exp(Y569)
= Exp(a + b × X569 – 2 × s)
= Exp(a + b × 829 – 2 × s)
= Exp(0.2178 + 0.0021 × 829 – 2 × 0.0350)
= Exp(1.8821)
= $6.57

November 14, 2024 calculations

Top border of price channel:

Exp(Y597)
= Exp(a + b × X597 + 2 × s)
= Exp(a + b × 867 + 2 × s)
= Exp(0.2178 + 0.0021 × 867 + 2 × 0.0350)
= Exp(2.1016)
= $8.18

Bottom border of price channel:

Exp(Y597)
= Exp(a + b × X597 – 2 × s)
= Exp(a + b × 867 – 2 × s)
= Exp(0.2178 + 0.0021 × 867 – 2 × 0.0350)
= Exp(1.9616)
= $7.11

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 114.60% per annum.
  • EHAB price at the close of November 19, 2024 was inside the secondary price channel.