Stock Price Trends

Extra Space Storage Inc (EXR)

Extra Space Storage is a real estate investment trust headquartered in Cottonwood Heights, Utah that invests in self storage units.

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 10.49% per annum.
  • EXR price at the close of November 19, 2024 was $165.51 and was higher than the top border of the primary price channel by $16.26 (10.90%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 39.98% per annum.
  • EXR 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 EXR 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 25, 2021
End date: June 7, 2024

a = 5.3544

b = -0.0003

s = 0.1027

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.49%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1027) – 1
= 50.80%

June 25, 2021 calculations

Top border of price channel:

Exp(Y401)
= Exp(a + b × X401 + 2 × s)
= Exp(a + b × 583 + 2 × s)
= Exp(5.3544 + -0.0003 × 583 + 2 × 0.1027)
= Exp(5.3828)
= $217.64

Bottom border of price channel:

Exp(Y401)
= Exp(a + b × X401 – 2 × s)
= Exp(a + b × 583 – 2 × s)
= Exp(5.3544 + -0.0003 × 583 – 2 × 0.1027)
= Exp(4.9721)
= $144.33

June 7, 2024 calculations

Top border of price channel:

Exp(Y1,143)
= Exp(a + b × X1,143 + 2 × s)
= Exp(a + b × 1,661 + 2 × s)
= Exp(5.3544 + -0.0003 × 1,661 + 2 × 0.1027)
= Exp(5.0557)
= $156.91

Bottom border of price channel:

Exp(Y1,143)
= Exp(a + b × X1,143 – 2 × s)
= Exp(a + b × 1,661 – 2 × s)
= Exp(5.3544 + -0.0003 × 1,661 – 2 × 0.1027)
= Exp(4.6449)
= $104.06

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 10.49% per annum.
  • EXR price at the close of November 19, 2024 was $165.51 and was higher than the top border of the primary price channel by $16.26 (10.90%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: August 4, 2023
End date: November 19, 2024

a = 3.4919

b = 0.0009

s = 0.0723

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0009) – 1
= 39.98%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0723) – 1
= 33.54%

August 4, 2023 calculations

Top border of price channel:

Exp(Y931)
= Exp(a + b × X931 + 2 × s)
= Exp(a + b × 1,353 + 2 × s)
= Exp(3.4919 + 0.0009 × 1,353 + 2 × 0.0723)
= Exp(4.8832)
= $132.05

Bottom border of price channel:

Exp(Y931)
= Exp(a + b × X931 – 2 × s)
= Exp(a + b × 1,353 – 2 × s)
= Exp(3.4919 + 0.0009 × 1,353 – 2 × 0.0723)
= Exp(4.5940)
= $98.89

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(3.4919 + 0.0009 × 1,826 + 2 × 0.0723)
= Exp(5.3190)
= $204.19

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.4919 + 0.0009 × 1,826 – 2 × 0.0723)
= Exp(5.0298)
= $152.91

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 39.98% per annum.
  • EXR price at the close of November 19, 2024 was inside the secondary price channel.