Stock Price Trends

The Ensign Group Inc (ENSG)

The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses. The company is headquartered in San Juan Capistrano, California.

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 45.26% per annum.
  • ENSG price at the close of November 19, 2024 was $144.56 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 2.10% per annum.
  • ENSG 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 ENSG 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: May 16, 2023
End date: November 14, 2024

a = 3.1616

b = 0.0010

s = 0.0446

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 45.26%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0446) – 1
= 19.52%

May 16, 2023 calculations

Top border of price channel:

Exp(Y876)
= Exp(a + b × X876 + 2 × s)
= Exp(a + b × 1,273 + 2 × s)
= Exp(3.1616 + 0.0010 × 1,273 + 2 × 0.0446)
= Exp(4.5528)
= $94.89

Bottom border of price channel:

Exp(Y876)
= Exp(a + b × X876 – 2 × s)
= Exp(a + b × 1,273 – 2 × s)
= Exp(3.1616 + 0.0010 × 1,273 – 2 × 0.0446)
= Exp(4.3745)
= $79.40

November 14, 2024 calculations

Top border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,821 + 2 × s)
= Exp(3.1616 + 0.0010 × 1,821 + 2 × 0.0446)
= Exp(5.1133)
= $166.21

Bottom border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,821 – 2 × s)
= Exp(3.1616 + 0.0010 × 1,821 – 2 × 0.0446)
= Exp(4.9350)
= $139.07

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 45.26% per annum.
  • ENSG price at the close of November 19, 2024 was $144.56 and was inside the primary price channel.

Secondary Trend

Start date: August 22, 2024
End date: November 19, 2024

a = 5.1082

b = -0.0001

s = 0.0224

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -2.10%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0224) – 1
= 9.37%

August 22, 2024 calculations

Top border of price channel:

Exp(Y1,195)
= Exp(a + b × X1,195 + 2 × s)
= Exp(a + b × 1,737 + 2 × s)
= Exp(5.1082 + -0.0001 × 1,737 + 2 × 0.0224)
= Exp(5.0519)
= $156.33

Bottom border of price channel:

Exp(Y1,195)
= Exp(a + b × X1,195 – 2 × s)
= Exp(a + b × 1,737 – 2 × s)
= Exp(5.1082 + -0.0001 × 1,737 – 2 × 0.0224)
= Exp(4.9624)
= $142.94

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(5.1082 + -0.0001 × 1,826 + 2 × 0.0224)
= Exp(5.0468)
= $155.52

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.1082 + -0.0001 × 1,826 – 2 × 0.0224)
= Exp(4.9572)
= $142.20

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 2.10% per annum.
  • ENSG price at the close of November 19, 2024 was inside the secondary price channel.