Stock Price Trends

Hormel Foods Corporation (HRL)

Hormel Foods Corporation is an American company founded in 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated foods.

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 21.65% per annum.
  • HRL price at the close of April 3, 2025 was $31.44 and was higher than the top border of the primary price channel by $5.23 (19.97%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 1.98% per annum.
  • HRL price at the close of April 3, 2025 was inside the secondary price channel.

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 HRL 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 1, 2022
End date: February 28, 2024

a = 4.3709

b = -0.0007

s = 0.0567

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0007) – 1
= -21.65%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0567) – 1
= 25.44%

March 1, 2022 calculations

Top border of price channel:

Exp(Y479)
= Exp(a + b × X479 + 2 × s)
= Exp(a + b × 694 + 2 × s)
= Exp(4.3709 + -0.0007 × 694 + 2 × 0.0567)
= Exp(4.0205)
= $55.73

Bottom border of price channel:

Exp(Y479)
= Exp(a + b × X479 – 2 × s)
= Exp(a + b × 694 – 2 × s)
= Exp(4.3709 + -0.0007 × 694 – 2 × 0.0567)
= Exp(3.7938)
= $44.43

February 28, 2024 calculations

Top border of price channel:

Exp(Y980)
= Exp(a + b × X980 + 2 × s)
= Exp(a + b × 1,423 + 2 × s)
= Exp(4.3709 + -0.0007 × 1,423 + 2 × 0.0567)
= Exp(3.5333)
= $34.24

Bottom border of price channel:

Exp(Y980)
= Exp(a + b × X980 – 2 × s)
= Exp(a + b × 1,423 – 2 × s)
= Exp(4.3709 + -0.0007 × 1,423 – 2 × 0.0567)
= Exp(3.3067)
= $27.29

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 21.65% per annum.
  • HRL price at the close of April 3, 2025 was $31.44 and was higher than the top border of the primary price channel by $5.23 (19.97%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: October 12, 2023
End date: April 3, 2025

a = 3.5174

b = -0.0001

s = 0.0499

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -1.98%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0499) – 1
= 22.09%

October 12, 2023 calculations

Top border of price channel:

Exp(Y886)
= Exp(a + b × X886 + 2 × s)
= Exp(a + b × 1,284 + 2 × s)
= Exp(3.5174 + -0.0001 × 1,284 + 2 × 0.0499)
= Exp(3.5468)
= $34.70

Bottom border of price channel:

Exp(Y886)
= Exp(a + b × X886 – 2 × s)
= Exp(a + b × 1,284 – 2 × s)
= Exp(3.5174 + -0.0001 × 1,284 – 2 × 0.0499)
= Exp(3.3472)
= $28.42

April 3, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(3.5174 + -0.0001 × 1,823 + 2 × 0.0499)
= Exp(3.5173)
= $33.69

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(3.5174 + -0.0001 × 1,823 – 2 × 0.0499)
= Exp(3.3176)
= $27.60

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 1.98% per annum.
  • HRL price at the close of April 3, 2025 was inside the secondary price channel.