Stock Price Trends

Sally Beauty Holdings Inc (SBH)

Sally Beauty Holdings, Inc. is a specialty retailer and distributor of professional beauty products. The company is headquartered in Denton, Texas.

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 55.35% per annum.
  • SBH price at the close of July 2, 2025 was $10.15 and was higher than the top border of the primary price channel by $1.73 (20.50%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 71.45% per annum.
  • SBH price at the close of July 2, 2025 was higher than the top border of the secondary price channel by $0.02 (0.24%).
  • 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 SBH 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 19, 2024
End date: May 9, 2025

a = 6.0085

b = -0.0022

s = 0.0738

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0022) – 1
= -55.35%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0738) – 1
= 34.35%

August 19, 2024 calculations

Top border of price channel:

Exp(Y1,037)
= Exp(a + b × X1,037 + 2 × s)
= Exp(a + b × 1,505 + 2 × s)
= Exp(6.0085 + -0.0022 × 1,505 + 2 × 0.0738)
= Exp(2.8313)
= $16.97

Bottom border of price channel:

Exp(Y1,037)
= Exp(a + b × X1,037 – 2 × s)
= Exp(a + b × 1,505 – 2 × s)
= Exp(6.0085 + -0.0022 × 1,505 – 2 × 0.0738)
= Exp(2.5360)
= $12.63

May 9, 2025 calculations

Top border of price channel:

Exp(Y1,218)
= Exp(a + b × X1,218 + 2 × s)
= Exp(a + b × 1,768 + 2 × s)
= Exp(6.0085 + -0.0022 × 1,768 + 2 × 0.0738)
= Exp(2.2503)
= $9.49

Bottom border of price channel:

Exp(Y1,218)
= Exp(a + b × X1,218 – 2 × s)
= Exp(a + b × 1,768 – 2 × s)
= Exp(6.0085 + -0.0022 × 1,768 – 2 × 0.0738)
= Exp(1.9550)
= $7.06

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 55.35% per annum.
  • SBH price at the close of July 2, 2025 was $10.15 and was higher than the top border of the primary price channel by $1.73 (20.50%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: April 3, 2025
End date: July 2, 2025

a = -0.4692

b = 0.0015

s = 0.0466

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0015) – 1
= 71.45%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0466) – 1
= 20.47%

April 3, 2025 calculations

Top border of price channel:

Exp(Y1,193)
= Exp(a + b × X1,193 + 2 × s)
= Exp(a + b × 1,732 + 2 × s)
= Exp(-0.4692 + 0.0015 × 1,732 + 2 × 0.0466)
= Exp(2.1821)
= $8.86

Bottom border of price channel:

Exp(Y1,193)
= Exp(a + b × X1,193 – 2 × s)
= Exp(a + b × 1,732 – 2 × s)
= Exp(-0.4692 + 0.0015 × 1,732 – 2 × 0.0466)
= Exp(1.9959)
= $7.36

July 2, 2025 calculations

Top border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,822 + 2 × s)
= Exp(-0.4692 + 0.0015 × 1,822 + 2 × 0.0466)
= Exp(2.3150)
= $10.13

Bottom border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,822 – 2 × s)
= Exp(-0.4692 + 0.0015 × 1,822 – 2 × 0.0466)
= Exp(2.1288)
= $8.40

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 71.45% per annum.
  • SBH price at the close of July 2, 2025 was higher than the top border of the secondary price channel by $0.02 (0.24%).