Stock Price Trends

Five Below Inc (FIVE)

Five Below, Inc. is a specialty value retailer in the United States. The company is headquartered in Philadelphia, Pennsylvania.

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 68.67% per annum.
  • FIVE price at the close of November 20, 2024 was $83.10 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 127.68% per annum.
  • FIVE price at the close of November 20, 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 FIVE 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 21, 2023
End date: November 20, 2024

a = 10.0862

b = -0.0032

s = 0.1584

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0032) – 1
= -68.67%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1584) – 1
= 88.41%

November 21, 2023 calculations

Top border of price channel:

Exp(Y1,006)
= Exp(a + b × X1,006 + 2 × s)
= Exp(a + b × 1,461 + 2 × s)
= Exp(10.0862 + -0.0032 × 1,461 + 2 × 0.1584)
= Exp(5.7577)
= $316.61

Bottom border of price channel:

Exp(Y1,006)
= Exp(a + b × X1,006 – 2 × s)
= Exp(a + b × 1,461 – 2 × s)
= Exp(10.0862 + -0.0032 × 1,461 – 2 × 0.1584)
= Exp(5.1242)
= $168.04

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(10.0862 + -0.0032 × 1,826 + 2 × 0.1584)
= Exp(4.5972)
= $99.20

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(10.0862 + -0.0032 × 1,826 – 2 × 0.1584)
= Exp(3.9637)
= $52.65

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 68.67% per annum.
  • FIVE price at the close of November 20, 2024 was $83.10 and was inside the primary price channel.

Secondary Trend

Start date: July 17, 2024
End date: November 20, 2024

a = 0.4524

b = 0.0023

s = 0.0837

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0023) – 1
= 127.68%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0837) – 1
= 39.79%

July 17, 2024 calculations

Top border of price channel:

Exp(Y1,168)
= Exp(a + b × X1,168 + 2 × s)
= Exp(a + b × 1,700 + 2 × s)
= Exp(0.4524 + 0.0023 × 1,700 + 2 × 0.0837)
= Exp(4.4519)
= $85.79

Bottom border of price channel:

Exp(Y1,168)
= Exp(a + b × X1,168 – 2 × s)
= Exp(a + b × 1,700 – 2 × s)
= Exp(0.4524 + 0.0023 × 1,700 – 2 × 0.0837)
= Exp(4.1170)
= $61.37

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(0.4524 + 0.0023 × 1,826 + 2 × 0.0837)
= Exp(4.7359)
= $113.97

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(0.4524 + 0.0023 × 1,826 – 2 × 0.0837)
= Exp(4.4010)
= $81.53

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 127.68% per annum.
  • FIVE price at the close of November 20, 2024 was inside the secondary price channel.