Stock Price Trends

McCormick & Company Incorporated (MKC)

McCormick & Company is an American multinational food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.

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 129.02% per annum.
  • MKC price at the close of September 6, 2024 was $82.88 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 81.55% per annum.
  • MKC price at the close of September 6, 2024 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 MKC 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: June 7, 2024
End date: September 6, 2024

a = 0.2659

b = 0.0023

s = 0.0146

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0023) – 1
= 129.02%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0146) – 1
= 6.00%

June 7, 2024 calculations

Top border of price channel:

Exp(Y1,195)
= Exp(a + b × X1,195 + 2 × s)
= Exp(a + b × 1,733 + 2 × s)
= Exp(0.2659 + 0.0023 × 1,733 + 2 × 0.0146)
= Exp(4.2293)
= $68.67

Bottom border of price channel:

Exp(Y1,195)
= Exp(a + b × X1,195 – 2 × s)
= Exp(a + b × 1,733 – 2 × s)
= Exp(0.2659 + 0.0023 × 1,733 – 2 × 0.0146)
= Exp(4.1710)
= $64.78

September 6, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(0.2659 + 0.0023 × 1,824 + 2 × 0.0146)
= Exp(4.4359)
= $84.42

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(0.2659 + 0.0023 × 1,824 – 2 × 0.0146)
= Exp(4.3776)
= $79.65

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 129.02% per annum.
  • MKC price at the close of September 6, 2024 was $82.88 and was inside the primary price channel.

Secondary Trend

Start date: July 26, 2024
End date: September 6, 2024

a = 1.4161

b = 0.0016

s = 0.0124

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0016) – 1
= 81.55%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0124) – 1
= 5.09%

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,228)
= Exp(a + b × X1,228 + 2 × s)
= Exp(a + b × 1,782 + 2 × s)
= Exp(1.4161 + 0.0016 × 1,782 + 2 × 0.0124)
= Exp(4.3526)
= $77.68

Bottom border of price channel:

Exp(Y1,228)
= Exp(a + b × X1,228 – 2 × s)
= Exp(a + b × 1,782 – 2 × s)
= Exp(1.4161 + 0.0016 × 1,782 – 2 × 0.0124)
= Exp(4.3030)
= $73.92

September 6, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(1.4161 + 0.0016 × 1,824 + 2 × 0.0124)
= Exp(4.4212)
= $83.20

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(1.4161 + 0.0016 × 1,824 – 2 × 0.0124)
= Exp(4.3716)
= $79.17

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 81.55% per annum.
  • MKC price at the close of September 6, 2024 was inside the secondary price channel.