Stock Price Trends

Green Brick Partners Inc (GRBK)

Green Brick Partners, Inc. is a home construction and land development company in the United States. The company is headquartered in Plano, Texas.

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 71.85% per annum.
  • GRBK price at the close of November 20, 2024 was $68.68 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 70.01% per annum.
  • GRBK 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 GRBK 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 23, 2022
End date: October 30, 2024

a = 1.7069

b = 0.0015

s = 0.1464

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0015) – 1
= 71.85%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1464) – 1
= 79.59%

March 23, 2022 calculations

Top border of price channel:

Exp(Y587)
= Exp(a + b × X587 + 2 × s)
= Exp(a + b × 853 + 2 × s)
= Exp(1.7069 + 0.0015 × 853 + 2 × 0.1464)
= Exp(3.2651)
= $26.18

Bottom border of price channel:

Exp(Y587)
= Exp(a + b × X587 – 2 × s)
= Exp(a + b × 853 – 2 × s)
= Exp(1.7069 + 0.0015 × 853 – 2 × 0.1464)
= Exp(2.6796)
= $14.58

October 30, 2024 calculations

Top border of price channel:

Exp(Y1,242)
= Exp(a + b × X1,242 + 2 × s)
= Exp(a + b × 1,805 + 2 × s)
= Exp(1.7069 + 0.0015 × 1,805 + 2 × 0.1464)
= Exp(4.6773)
= $107.48

Bottom border of price channel:

Exp(Y1,242)
= Exp(a + b × X1,242 – 2 × s)
= Exp(a + b × 1,805 – 2 × s)
= Exp(1.7069 + 0.0015 × 1,805 – 2 × 0.1464)
= Exp(4.0918)
= $59.85

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 71.85% per annum.
  • GRBK price at the close of November 20, 2024 was $68.68 and was inside the primary price channel.

Secondary Trend

Start date: September 19, 2024
End date: November 20, 2024

a = 10.2597

b = -0.0033

s = 0.0325

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0033) – 1
= -70.01%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0325) – 1
= 13.86%

September 19, 2024 calculations

Top border of price channel:

Exp(Y1,213)
= Exp(a + b × X1,213 + 2 × s)
= Exp(a + b × 1,764 + 2 × s)
= Exp(10.2597 + -0.0033 × 1,764 + 2 × 0.0325)
= Exp(4.5041)
= $90.39

Bottom border of price channel:

Exp(Y1,213)
= Exp(a + b × X1,213 – 2 × s)
= Exp(a + b × 1,764 – 2 × s)
= Exp(10.2597 + -0.0033 × 1,764 – 2 × 0.0325)
= Exp(4.3743)
= $79.38

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(10.2597 + -0.0033 × 1,826 + 2 × 0.0325)
= Exp(4.2995)
= $73.66

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(10.2597 + -0.0033 × 1,826 – 2 × 0.0325)
= Exp(4.1697)
= $64.70

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 70.01% per annum.
  • GRBK price at the close of November 20, 2024 was inside the secondary price channel.