Stock Price Trends

Tapestry Inc (TPR)

Tapestry, Inc. is an American multinational luxury fashion holding company. It is based in New York City and is the parent company of three major brands: Coach New York, Kate Spade New York and Stuart Weitzman.

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 13.43% per annum.
  • TPR price at the close of November 20, 2024 was $55.30 and was higher than the top border of the primary price channel by $28.14 (103.63%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 3.94% per annum.
  • TPR price at the close of November 20, 2024 was higher than the top border of the secondary price channel by $2.89 (5.51%).
  • 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 TPR 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 6, 2021
End date: November 22, 2022

a = 3.8403

b = -0.0004

s = 0.0914

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -13.43%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0914) – 1
= 44.12%

January 6, 2021 calculations

Top border of price channel:

Exp(Y282)
= Exp(a + b × X282 + 2 × s)
= Exp(a + b × 412 + 2 × s)
= Exp(3.8403 + -0.0004 × 412 + 2 × 0.0914)
= Exp(3.8602)
= $47.48

Bottom border of price channel:

Exp(Y282)
= Exp(a + b × X282 – 2 × s)
= Exp(a + b × 412 – 2 × s)
= Exp(3.8403 + -0.0004 × 412 – 2 × 0.0914)
= Exp(3.4948)
= $32.94

November 22, 2022 calculations

Top border of price channel:

Exp(Y756)
= Exp(a + b × X756 + 2 × s)
= Exp(a + b × 1,097 + 2 × s)
= Exp(3.8403 + -0.0004 × 1,097 + 2 × 0.0914)
= Exp(3.5896)
= $36.22

Bottom border of price channel:

Exp(Y756)
= Exp(a + b × X756 – 2 × s)
= Exp(a + b × 1,097 – 2 × s)
= Exp(3.8403 + -0.0004 × 1,097 – 2 × 0.0914)
= Exp(3.2242)
= $25.13

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 13.43% per annum.
  • TPR price at the close of November 20, 2024 was $55.30 and was higher than the top border of the primary price channel by $28.14 (103.63%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: January 6, 2021
End date: November 20, 2024

a = 3.4800

b = 0.0001

s = 0.1429

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 3.94%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1429) – 1
= 77.12%

January 6, 2021 calculations

Top border of price channel:

Exp(Y282)
= Exp(a + b × X282 + 2 × s)
= Exp(a + b × 412 + 2 × s)
= Exp(3.4800 + 0.0001 × 412 + 2 × 0.1429)
= Exp(3.8094)
= $45.13

Bottom border of price channel:

Exp(Y282)
= Exp(a + b × X282 – 2 × s)
= Exp(a + b × 412 – 2 × s)
= Exp(3.4800 + 0.0001 × 412 – 2 × 0.1429)
= Exp(3.2378)
= $25.48

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(3.4800 + 0.0001 × 1,826 + 2 × 0.1429)
= Exp(3.9591)
= $52.41

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.4800 + 0.0001 × 1,826 – 2 × 0.1429)
= Exp(3.3875)
= $29.59

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 3.94% per annum.
  • TPR price at the close of November 20, 2024 was higher than the top border of the secondary price channel by $2.89 (5.51%).