Stock Price Trends

Generac Holdings Inc (GNRC)

Generac Holdings Inc., commonly referred to as Generac, is a Fortune 1000 American manufacturer of backup power generation products for residential, light commercial and industrial markets.

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 22.94% per annum.
  • GNRC price at the close of March 31, 2025 was $126.65 and was lower than the bottom border of the primary price channel by $5.23 (3.97%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 64.37% per annum.
  • GNRC price at the close of March 31, 2025 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 GNRC 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: October 19, 2022
End date: February 19, 2025

a = 4.0757

b = 0.0006

s = 0.1133

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 22.94%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1133) – 1
= 57.31%

October 19, 2022 calculations

Top border of price channel:

Exp(Y643)
= Exp(a + b × X643 + 2 × s)
= Exp(a + b × 931 + 2 × s)
= Exp(4.0757 + 0.0006 × 931 + 2 × 0.1133)
= Exp(4.8291)
= $125.10

Bottom border of price channel:

Exp(Y643)
= Exp(a + b × X643 – 2 × s)
= Exp(a + b × 931 – 2 × s)
= Exp(4.0757 + 0.0006 × 931 – 2 × 0.1133)
= Exp(4.3760)
= $79.52

February 19, 2025 calculations

Top border of price channel:

Exp(Y1,227)
= Exp(a + b × X1,227 + 2 × s)
= Exp(a + b × 1,785 + 2 × s)
= Exp(4.0757 + 0.0006 × 1,785 + 2 × 0.1133)
= Exp(5.3123)
= $202.83

Bottom border of price channel:

Exp(Y1,227)
= Exp(a + b × X1,227 – 2 × s)
= Exp(a + b × 1,785 – 2 × s)
= Exp(4.0757 + 0.0006 × 1,785 – 2 × 0.1133)
= Exp(4.8593)
= $128.93

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 22.94% per annum.
  • GNRC price at the close of March 31, 2025 was $126.65 and was lower than the bottom border of the primary price channel by $5.23 (3.97%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: November 5, 2024
End date: March 31, 2025

a = 9.9973

b = -0.0028

s = 0.0355

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0028) – 1
= -64.37%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0355) – 1
= 15.25%

November 5, 2024 calculations

Top border of price channel:

Exp(Y1,157)
= Exp(a + b × X1,157 + 2 × s)
= Exp(a + b × 1,679 + 2 × s)
= Exp(9.9973 + -0.0028 × 1,679 + 2 × 0.0355)
= Exp(5.3215)
= $204.69

Bottom border of price channel:

Exp(Y1,157)
= Exp(a + b × X1,157 – 2 × s)
= Exp(a + b × 1,679 – 2 × s)
= Exp(9.9973 + -0.0028 × 1,679 – 2 × 0.0355)
= Exp(5.1796)
= $177.60

March 31, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(9.9973 + -0.0028 × 1,825 + 2 × 0.0355)
= Exp(4.9087)
= $135.46

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(9.9973 + -0.0028 × 1,825 – 2 × 0.0355)
= Exp(4.7668)
= $117.54

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 64.37% per annum.
  • GNRC price at the close of March 31, 2025 was inside the secondary price channel.