Stock Price Trends

National HealthCare Corporation (NHC)

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, home health programs, and a behavioral health hospital. The company is headquartered in Murfreesboro, Tennessee.

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 44.81% per annum.
  • NHC price at the close of April 25, 2025 was $94.58 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 1.29% per annum.
  • NHC price at the close of April 25, 2025 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 NHC 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: August 15, 2024
End date: April 25, 2025

a = 7.4576

b = -0.0016

s = 0.0509

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0016) – 1
= -44.81%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0509) – 1
= 22.57%

August 15, 2024 calculations

Top border of price channel:

Exp(Y1,083)
= Exp(a + b × X1,083 + 2 × s)
= Exp(a + b × 1,571 + 2 × s)
= Exp(7.4576 + -0.0016 × 1,571 + 2 × 0.0509)
= Exp(5.0007)
= $148.52

Bottom border of price channel:

Exp(Y1,083)
= Exp(a + b × X1,083 – 2 × s)
= Exp(a + b × 1,571 – 2 × s)
= Exp(7.4576 + -0.0016 × 1,571 – 2 × 0.0509)
= Exp(4.7972)
= $121.18

April 25, 2025 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(7.4576 + -0.0016 × 1,824 + 2 × 0.0509)
= Exp(4.5887)
= $98.36

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(7.4576 + -0.0016 × 1,824 – 2 × 0.0509)
= Exp(4.3852)
= $80.25

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 44.81% per annum.
  • NHC price at the close of April 25, 2025 was $94.58 and was inside the primary price channel.

Secondary Trend

Start date: February 21, 2025
End date: April 25, 2025

a = 4.4621

b = 0.0000

s = 0.0136

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 1.29%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0136) – 1
= 5.58%

February 21, 2025 calculations

Top border of price channel:

Exp(Y1,212)
= Exp(a + b × X1,212 + 2 × s)
= Exp(a + b × 1,761 + 2 × s)
= Exp(4.4621 + 0.0000 × 1,761 + 2 × 0.0136)
= Exp(4.5513)
= $94.76

Bottom border of price channel:

Exp(Y1,212)
= Exp(a + b × X1,212 – 2 × s)
= Exp(a + b × 1,761 – 2 × s)
= Exp(4.4621 + 0.0000 × 1,761 – 2 × 0.0136)
= Exp(4.4970)
= $89.75

April 25, 2025 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.4621 + 0.0000 × 1,824 + 2 × 0.0136)
= Exp(4.5535)
= $94.97

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.4621 + 0.0000 × 1,824 – 2 × 0.0136)
= Exp(4.4992)
= $89.95

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 1.29% per annum.
  • NHC price at the close of April 25, 2025 was inside the secondary price channel.