LGI Homes (LGIH)
LGI Homes, Inc. designs, builds and sells homes in the United States. The company is headquartered in The Woodlands, Texas.
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 35.79% per annum.
- LGIH price at the close of November 20, 2024 was $101.79 and was higher than the top border of the primary price channel by $58.37 (134.45%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 5.23% per annum.
- LGIH 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 LGIH 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 5, 2021
End date: November 29, 2022
a = 5.7712
b = -0.0012
s = 0.1079
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -35.79%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1079) – 1
= 53.95%
March 5, 2021 calculations
Top border of price channel:
Exp(Y322)
= Exp(a + b × X322 + 2 × s)
= Exp(a + b × 470 + 2 × s)
= Exp(5.7712 + -0.0012 × 470 + 2 × 0.1079)
= Exp(5.4165)
= $225.10
Bottom border of price channel:
Exp(Y322)
= Exp(a + b × X322 – 2 × s)
= Exp(a + b × 470 – 2 × s)
= Exp(5.7712 + -0.0012 × 470 – 2 × 0.1079)
= Exp(4.9851)
= $146.21
November 29, 2022 calculations
Top border of price channel:
Exp(Y760)
= Exp(a + b × X760 + 2 × s)
= Exp(a + b × 1,104 + 2 × s)
= Exp(5.7712 + -0.0012 × 1,104 + 2 × 0.1079)
= Exp(4.6471)
= $104.28
Bottom border of price channel:
Exp(Y760)
= Exp(a + b × X760 – 2 × s)
= Exp(a + b × 1,104 – 2 × s)
= Exp(5.7712 + -0.0012 × 1,104 – 2 × 0.1079)
= Exp(4.2156)
= $67.74
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 35.79% per annum.
- LGIH price at the close of November 20, 2024 was $101.79 and was higher than the top border of the primary price channel by $58.37 (134.45%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: March 23, 2022
End date: November 20, 2024
a = 4.4732
b = 0.0001
s = 0.1240
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 5.23%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1240) – 1
= 64.20%
March 23, 2022 calculations
Top border of price channel:
Exp(Y587)
= Exp(a + b × X587 + 2 × s)
= Exp(a + b × 853 + 2 × s)
= Exp(4.4732 + 0.0001 × 853 + 2 × 0.1240)
= Exp(4.8402)
= $126.50
Bottom border of price channel:
Exp(Y587)
= Exp(a + b × X587 – 2 × s)
= Exp(a + b × 853 – 2 × s)
= Exp(4.4732 + 0.0001 × 853 – 2 × 0.1240)
= Exp(4.3443)
= $77.04
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(4.4732 + 0.0001 × 1,826 + 2 × 0.1240)
= Exp(4.9761)
= $144.90
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.4732 + 0.0001 × 1,826 – 2 × 0.1240)
= Exp(4.4801)
= $88.25
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 5.23% per annum.
- LGIH price at the close of November 20, 2024 was inside the secondary price channel.