Stock Price Trends

Omega Healthcare Investors Inc (OHI)

Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily skilled nursing and assisted living facilities.

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 124.36% per annum.
  • OHI price at the close of November 19, 2024 was $40.15 and was lower than the bottom border of the primary price channel by $3.63 (8.29%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 21.91% per annum.
  • OHI price at the close of November 19, 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 OHI 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: April 10, 2024
End date: October 1, 2024

a = -0.2243

b = 0.0022

s = 0.0195

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0022) – 1
= 124.36%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0195) – 1
= 8.13%

April 10, 2024 calculations

Top border of price channel:

Exp(Y1,102)
= Exp(a + b × X1,102 + 2 × s)
= Exp(a + b × 1,603 + 2 × s)
= Exp(-0.2243 + 0.0022 × 1,603 + 2 × 0.0195)
= Exp(3.3637)
= $28.90

Bottom border of price channel:

Exp(Y1,102)
= Exp(a + b × X1,102 – 2 × s)
= Exp(a + b × 1,603 – 2 × s)
= Exp(-0.2243 + 0.0022 × 1,603 – 2 × 0.0195)
= Exp(3.2855)
= $26.72

October 1, 2024 calculations

Top border of price channel:

Exp(Y1,222)
= Exp(a + b × X1,222 + 2 × s)
= Exp(a + b × 1,777 + 2 × s)
= Exp(-0.2243 + 0.0022 × 1,777 + 2 × 0.0195)
= Exp(3.7489)
= $42.47

Bottom border of price channel:

Exp(Y1,222)
= Exp(a + b × X1,222 – 2 × s)
= Exp(a + b × 1,777 – 2 × s)
= Exp(-0.2243 + 0.0022 × 1,777 – 2 × 0.0195)
= Exp(3.6707)
= $39.28

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 124.36% per annum.
  • OHI price at the close of November 19, 2024 was $40.15 and was lower than the bottom border of the primary price channel by $3.63 (8.29%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: August 23, 2024
End date: November 19, 2024

a = 2.7183

b = 0.0005

s = 0.0168

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 21.91%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0168) – 1
= 6.95%

August 23, 2024 calculations

Top border of price channel:

Exp(Y1,196)
= Exp(a + b × X1,196 + 2 × s)
= Exp(a + b × 1,738 + 2 × s)
= Exp(2.7183 + 0.0005 × 1,738 + 2 × 0.0168)
= Exp(3.6954)
= $40.26

Bottom border of price channel:

Exp(Y1,196)
= Exp(a + b × X1,196 – 2 × s)
= Exp(a + b × 1,738 – 2 × s)
= Exp(2.7183 + 0.0005 × 1,738 – 2 × 0.0168)
= Exp(3.6282)
= $37.65

November 19, 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(2.7183 + 0.0005 × 1,826 + 2 × 0.0168)
= Exp(3.7431)
= $42.23

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.7183 + 0.0005 × 1,826 – 2 × 0.0168)
= Exp(3.6760)
= $39.49

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 21.91% per annum.
  • OHI price at the close of November 19, 2024 was inside the secondary price channel.