Stock Price Trends

Humana Inc (HUM)

Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky.

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 27.51% per annum.
  • HUM price at the close of March 31, 2025 was $264.60 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 34.96% per annum.
  • HUM price at the close of March 31, 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 HUM 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 24, 2022
End date: March 31, 2025

a = 7.1815

b = -0.0009

s = 0.0992

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -27.51%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0992) – 1
= 48.71%

October 24, 2022 calculations

Top border of price channel:

Exp(Y646)
= Exp(a + b × X646 + 2 × s)
= Exp(a + b × 936 + 2 × s)
= Exp(7.1815 + -0.0009 × 936 + 2 × 0.0992)
= Exp(6.5549)
= $702.66

Bottom border of price channel:

Exp(Y646)
= Exp(a + b × X646 – 2 × s)
= Exp(a + b × 936 – 2 × s)
= Exp(7.1815 + -0.0009 × 936 – 2 × 0.0992)
= Exp(6.1580)
= $472.49

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(7.1815 + -0.0009 × 1,825 + 2 × 0.0992)
= Exp(5.7713)
= $320.95

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(7.1815 + -0.0009 × 1,825 – 2 × 0.0992)
= Exp(5.3744)
= $215.82

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 27.51% per annum.
  • HUM price at the close of March 31, 2025 was $264.60 and was inside the primary price channel.

Secondary Trend

Start date: August 2, 2023
End date: March 31, 2025

a = 7.6510

b = -0.0012

s = 0.0958

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -34.96%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0958) – 1
= 46.71%

August 2, 2023 calculations

Top border of price channel:

Exp(Y839)
= Exp(a + b × X839 + 2 × s)
= Exp(a + b × 1,218 + 2 × s)
= Exp(7.6510 + -0.0012 × 1,218 + 2 × 0.0958)
= Exp(6.4073)
= $606.26

Bottom border of price channel:

Exp(Y839)
= Exp(a + b × X839 – 2 × s)
= Exp(a + b × 1,218 – 2 × s)
= Exp(7.6510 + -0.0012 × 1,218 – 2 × 0.0958)
= Exp(6.0240)
= $413.24

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(7.6510 + -0.0012 × 1,825 + 2 × 0.0958)
= Exp(5.6920)
= $296.49

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(7.6510 + -0.0012 × 1,825 – 2 × 0.0958)
= Exp(5.3087)
= $202.09

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 34.96% per annum.
  • HUM price at the close of March 31, 2025 was inside the secondary price channel.