Stock Price Trends

Texas Roadhouse Inc (TXRH)

Texas Roadhouse, Inc., operates casual restaurants in the United States and internationally. The company is headquartered in Louisville, Kentucky.

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 113.44% per annum.
  • TXRH price at the close of November 20, 2024 was $193.41 and was lower than the bottom border of the primary price channel by $18.31 (8.65%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 30.74% per annum.
  • TXRH 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 TXRH 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 15, 2023
End date: July 23, 2024

a = 1.6735

b = 0.0021

s = 0.0557

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0021) – 1
= 113.44%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0557) – 1
= 24.93%

August 15, 2023 calculations

Top border of price channel:

Exp(Y937)
= Exp(a + b × X937 + 2 × s)
= Exp(a + b × 1,363 + 2 × s)
= Exp(1.6735 + 0.0021 × 1,363 + 2 × 0.0557)
= Exp(4.6161)
= $101.10

Bottom border of price channel:

Exp(Y937)
= Exp(a + b × X937 – 2 × s)
= Exp(a + b × 1,363 – 2 × s)
= Exp(1.6735 + 0.0021 × 1,363 – 2 × 0.0557)
= Exp(4.3935)
= $80.92

July 23, 2024 calculations

Top border of price channel:

Exp(Y1,172)
= Exp(a + b × X1,172 + 2 × s)
= Exp(a + b × 1,706 + 2 × s)
= Exp(1.6735 + 0.0021 × 1,706 + 2 × 0.0557)
= Exp(5.3286)
= $206.15

Bottom border of price channel:

Exp(Y1,172)
= Exp(a + b × X1,172 – 2 × s)
= Exp(a + b × 1,706 – 2 × s)
= Exp(1.6735 + 0.0021 × 1,706 – 2 × 0.0557)
= Exp(5.1060)
= $165.01

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 113.44% per annum.
  • TXRH price at the close of November 20, 2024 was $193.41 and was lower than the bottom border of the primary price channel by $18.31 (8.65%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: February 16, 2024
End date: October 28, 2024

a = 3.8681

b = 0.0007

s = 0.0328

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 30.74%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0328) – 1
= 14.03%

February 16, 2024 calculations

Top border of price channel:

Exp(Y1,065)
= Exp(a + b × X1,065 + 2 × s)
= Exp(a + b × 1,548 + 2 × s)
= Exp(3.8681 + 0.0007 × 1,548 + 2 × 0.0328)
= Exp(5.0705)
= $159.26

Bottom border of price channel:

Exp(Y1,065)
= Exp(a + b × X1,065 – 2 × s)
= Exp(a + b × 1,548 – 2 × s)
= Exp(3.8681 + 0.0007 × 1,548 – 2 × 0.0328)
= Exp(4.9392)
= $139.66

October 28, 2024 calculations

Top border of price channel:

Exp(Y1,240)
= Exp(a + b × X1,240 + 2 × s)
= Exp(a + b × 1,803 + 2 × s)
= Exp(3.8681 + 0.0007 × 1,803 + 2 × 0.0328)
= Exp(5.2578)
= $192.05

Bottom border of price channel:

Exp(Y1,240)
= Exp(a + b × X1,240 – 2 × s)
= Exp(a + b × 1,803 – 2 × s)
= Exp(3.8681 + 0.0007 × 1,803 – 2 × 0.0328)
= Exp(5.1265)
= $168.42

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 30.74% per annum.
  • TXRH price at the close of November 20, 2024 was inside the secondary price channel.