The Coca-Cola Company (KO)
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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 0.73% per annum.
- KO price at the close of March 31, 2025 was $71.62 and was higher than the top border of the primary price channel by $9.37 (15.06%).
- The secondary trend is increasing.
- The growth rate of the secondary trend is 28.04% per annum.
- KO price at the close of March 31, 2025 was lower than the bottom border of the secondary price channel by $0.67 (0.93%). This indicates a possible reversal in the secondary trend direction.
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 KO 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: December 13, 2021
End date: April 24, 2024
a = 4.0169
b = 0.0000
s = 0.0389
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 0.73%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0389) – 1
= 16.82%
December 13, 2021 calculations
Top border of price channel:
Exp(Y429)
= Exp(a + b × X429 + 2 × s)
= Exp(a + b × 621 + 2 × s)
= Exp(4.0169 + 0.0000 × 621 + 2 × 0.0389)
= Exp(4.1071)
= $60.77
Bottom border of price channel:
Exp(Y429)
= Exp(a + b × X429 – 2 × s)
= Exp(a + b × 621 – 2 × s)
= Exp(4.0169 + 0.0000 × 621 – 2 × 0.0389)
= Exp(3.9516)
= $52.02
April 24, 2024 calculations
Top border of price channel:
Exp(Y1,022)
= Exp(a + b × X1,022 + 2 × s)
= Exp(a + b × 1,484 + 2 × s)
= Exp(4.0169 + 0.0000 × 1,484 + 2 × 0.0389)
= Exp(4.1243)
= $61.82
Bottom border of price channel:
Exp(Y1,022)
= Exp(a + b × X1,022 – 2 × s)
= Exp(a + b × 1,484 – 2 × s)
= Exp(4.0169 + 0.0000 × 1,484 – 2 × 0.0389)
= Exp(3.9688)
= $52.92
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 0.73% per annum.
- KO price at the close of March 31, 2025 was $71.62 and was higher than the top border of the primary price channel by $9.37 (15.06%).
Secondary Trend
Start date: August 31, 2023
End date: October 24, 2024
a = 3.1055
b = 0.0007
s = 0.0304
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 28.04%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0304) – 1
= 12.95%
August 31, 2023 calculations
Top border of price channel:
Exp(Y860)
= Exp(a + b × X860 + 2 × s)
= Exp(a + b × 1,247 + 2 × s)
= Exp(3.1055 + 0.0007 × 1,247 + 2 × 0.0304)
= Exp(4.0109)
= $55.20
Bottom border of price channel:
Exp(Y860)
= Exp(a + b × X860 – 2 × s)
= Exp(a + b × 1,247 – 2 × s)
= Exp(3.1055 + 0.0007 × 1,247 – 2 × 0.0304)
= Exp(3.8892)
= $48.87
October 24, 2024 calculations
Top border of price channel:
Exp(Y1,149)
= Exp(a + b × X1,149 + 2 × s)
= Exp(a + b × 1,667 + 2 × s)
= Exp(3.1055 + 0.0007 × 1,667 + 2 × 0.0304)
= Exp(4.2954)
= $73.36
Bottom border of price channel:
Exp(Y1,149)
= Exp(a + b × X1,149 – 2 × s)
= Exp(a + b × 1,667 – 2 × s)
= Exp(3.1055 + 0.0007 × 1,667 – 2 × 0.0304)
= Exp(4.1737)
= $64.95
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 28.04% per annum.
- KO price at the close of March 31, 2025 was lower than the bottom border of the secondary price channel by $0.67 (0.93%). This indicates a possible reversal in the secondary trend direction.