Nike Inc (NKE)
Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment.
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 37.92% per annum.
- NKE price at the close of November 20, 2024 was $73.36 and was higher than the top border of the primary price channel by $32.53 (79.67%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 16.78% per annum.
- NKE price at the close of November 20, 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 NKE 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 25, 2021
End date: November 10, 2022
a = 5.9412
b = -0.0013
s = 0.0765
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0013) – 1
= -37.92%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0765) – 1
= 35.81%
June 25, 2021 calculations
Top border of price channel:
Exp(Y400)
= Exp(a + b × X400 + 2 × s)
= Exp(a + b × 582 + 2 × s)
= Exp(5.9412 + -0.0013 × 582 + 2 × 0.0765)
= Exp(5.3341)
= $207.29
Bottom border of price channel:
Exp(Y400)
= Exp(a + b × X400 – 2 × s)
= Exp(a + b × 582 – 2 × s)
= Exp(5.9412 + -0.0013 × 582 – 2 × 0.0765)
= Exp(5.0280)
= $152.63
November 10, 2022 calculations
Top border of price channel:
Exp(Y748)
= Exp(a + b × X748 + 2 × s)
= Exp(a + b × 1,085 + 2 × s)
= Exp(5.9412 + -0.0013 × 1,085 + 2 × 0.0765)
= Exp(4.6772)
= $107.47
Bottom border of price channel:
Exp(Y748)
= Exp(a + b × X748 – 2 × s)
= Exp(a + b × 1,085 – 2 × s)
= Exp(5.9412 + -0.0013 × 1,085 – 2 × 0.0765)
= Exp(4.3711)
= $79.13
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 37.92% per annum.
- NKE price at the close of November 20, 2024 was $73.36 and was higher than the top border of the primary price channel by $32.53 (79.67%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: June 25, 2021
End date: November 20, 2024
a = 5.3075
b = -0.0005
s = 0.1138
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0005) – 1
= -16.78%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1138) – 1
= 57.62%
June 25, 2021 calculations
Top border of price channel:
Exp(Y400)
= Exp(a + b × X400 + 2 × s)
= Exp(a + b × 582 + 2 × s)
= Exp(5.3075 + -0.0005 × 582 + 2 × 0.1138)
= Exp(5.2421)
= $189.06
Bottom border of price channel:
Exp(Y400)
= Exp(a + b × X400 – 2 × s)
= Exp(a + b × 582 – 2 × s)
= Exp(5.3075 + -0.0005 × 582 – 2 × 0.1138)
= Exp(4.7871)
= $119.95
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(5.3075 + -0.0005 × 1,826 + 2 × 0.1138)
= Exp(4.6160)
= $101.09
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.3075 + -0.0005 × 1,826 – 2 × 0.1138)
= Exp(4.1610)
= $64.14
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 16.78% per annum.
- NKE price at the close of November 20, 2024 was inside the secondary price channel.