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 increasing.
  • The growth rate of the primary trend is 72.40% per annum.
  • NHC price at the close of January 27, 2025 was $98.09 and was lower than the bottom border of the primary price channel by $26.47 (21.25%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 78.60% per annum.
  • NHC price at the close of January 27, 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: January 4, 2023
End date: December 11, 2024

a = 2.2610

b = 0.0015

s = 0.0804

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0015) – 1
= 72.40%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0804) – 1
= 37.95%

January 4, 2023 calculations

Top border of price channel:

Exp(Y740)
= Exp(a + b × X740 + 2 × s)
= Exp(a + b × 1,072 + 2 × s)
= Exp(2.2610 + 0.0015 × 1,072 + 2 × 0.0804)
= Exp(4.0214)
= $55.78

Bottom border of price channel:

Exp(Y740)
= Exp(a + b × X740 – 2 × s)
= Exp(a + b × 1,072 – 2 × s)
= Exp(2.2610 + 0.0015 × 1,072 – 2 × 0.0804)
= Exp(3.6997)
= $40.44

December 11, 2024 calculations

Top border of price channel:

Exp(Y1,227)
= Exp(a + b × X1,227 + 2 × s)
= Exp(a + b × 1,779 + 2 × s)
= Exp(2.2610 + 0.0015 × 1,779 + 2 × 0.0804)
= Exp(5.0764)
= $160.20

Bottom border of price channel:

Exp(Y1,227)
= Exp(a + b × X1,227 – 2 × s)
= Exp(a + b × 1,779 – 2 × s)
= Exp(2.2610 + 0.0015 × 1,779 – 2 × 0.0804)
= Exp(4.7547)
= $116.12

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 72.40% per annum.
  • NHC price at the close of January 27, 2025 was $98.09 and was lower than the bottom border of the primary price channel by $26.47 (21.25%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: November 6, 2024
End date: January 27, 2025

a = 12.2740

b = -0.0042

s = 0.0302

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0042) – 1
= -78.60%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0302) – 1
= 12.85%

November 6, 2024 calculations

Top border of price channel:

Exp(Y1,203)
= Exp(a + b × X1,203 + 2 × s)
= Exp(a + b × 1,744 + 2 × s)
= Exp(12.2740 + -0.0042 × 1,744 + 2 × 0.0302)
= Exp(4.9677)
= $143.69

Bottom border of price channel:

Exp(Y1,203)
= Exp(a + b × X1,203 – 2 × s)
= Exp(a + b × 1,744 – 2 × s)
= Exp(12.2740 + -0.0042 × 1,744 – 2 × 0.0302)
= Exp(4.8468)
= $127.33

January 27, 2025 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(12.2740 + -0.0042 × 1,826 + 2 × 0.0302)
= Exp(4.6213)
= $101.63

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(12.2740 + -0.0042 × 1,826 – 2 × 0.0302)
= Exp(4.5004)
= $90.05

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 78.60% per annum.
  • NHC price at the close of January 27, 2025 was inside the secondary price channel.