Stock Price Trends

Ulta Beauty Inc (ULTA)

Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc., is an American chain of beauty stores headquartered in Bolingbrook, Illinois. Ulta Beauty carries cosmetics and skincare brands, men's and women's fragrances, nail products, bath and body products, beauty tools and haircare products.

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 12.87% per annum.
  • ULTA price at the close of March 31, 2025 was $366.54 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 58.22% per annum.
  • ULTA price at the close of March 31, 2025 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 ULTA 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: November 28, 2022
End date: March 31, 2025

a = 6.5982

b = -0.0004

s = 0.1025

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -12.87%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1025) – 1
= 50.67%

November 28, 2022 calculations

Top border of price channel:

Exp(Y670)
= Exp(a + b × X670 + 2 × s)
= Exp(a + b × 971 + 2 × s)
= Exp(6.5982 + -0.0004 × 971 + 2 × 0.1025)
= Exp(6.4366)
= $624.28

Bottom border of price channel:

Exp(Y670)
= Exp(a + b × X670 – 2 × s)
= Exp(a + b × 971 – 2 × s)
= Exp(6.5982 + -0.0004 × 971 – 2 × 0.1025)
= Exp(6.0267)
= $414.33

March 31, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(6.5982 + -0.0004 × 1,825 + 2 × 0.1025)
= Exp(6.1142)
= $452.24

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(6.5982 + -0.0004 × 1,825 – 2 × 0.1025)
= Exp(5.7043)
= $300.15

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 12.87% per annum.
  • ULTA price at the close of March 31, 2025 was $366.54 and was inside the primary price channel.

Secondary Trend

Start date: December 11, 2024
End date: March 31, 2025

a = 10.1975

b = -0.0024

s = 0.0401

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0024) – 1
= -58.22%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0401) – 1
= 17.40%

December 11, 2024 calculations

Top border of price channel:

Exp(Y1,182)
= Exp(a + b × X1,182 + 2 × s)
= Exp(a + b × 1,715 + 2 × s)
= Exp(10.1975 + -0.0024 × 1,715 + 2 × 0.0401)
= Exp(6.1774)
= $481.76

Bottom border of price channel:

Exp(Y1,182)
= Exp(a + b × X1,182 – 2 × s)
= Exp(a + b × 1,715 – 2 × s)
= Exp(10.1975 + -0.0024 × 1,715 – 2 × 0.0401)
= Exp(6.0170)
= $410.34

March 31, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(10.1975 + -0.0024 × 1,825 + 2 × 0.0401)
= Exp(5.9145)
= $370.35

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(10.1975 + -0.0024 × 1,825 – 2 × 0.0401)
= Exp(5.7540)
= $315.45

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 58.22% per annum.
  • ULTA price at the close of March 31, 2025 was inside the secondary price channel.