Stock Price Trends

Upbound Group Inc. (UPBD)

Upbound Group, Inc., an omni-channel platform company, leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. The company is headquartered in Plano, Texas.

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 25.18% per annum.
  • UPBD price at the close of December 2, 2024 was $34.59 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 8.65% per annum.
  • UPBD price at the close of December 2, 2024 was higher than the top border of the secondary price channel by $1.69 (5.13%). This indicates a possible reversal in the secondary trend direction.
  • 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 UPBD 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: March 23, 2022
End date: September 5, 2024

a = 2.4700

b = 0.0006

s = 0.1098

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 25.18%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1098) – 1
= 55.15%

March 23, 2022 calculations

Top border of price channel:

Exp(Y580)
= Exp(a + b × X580 + 2 × s)
= Exp(a + b × 841 + 2 × s)
= Exp(2.4700 + 0.0006 × 841 + 2 × 0.1098)
= Exp(3.2070)
= $24.70

Bottom border of price channel:

Exp(Y580)
= Exp(a + b × X580 – 2 × s)
= Exp(a + b × 841 – 2 × s)
= Exp(2.4700 + 0.0006 × 841 – 2 × 0.1098)
= Exp(2.7678)
= $15.92

September 5, 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(2.4700 + 0.0006 × 1,738 + 2 × 0.1098)
= Exp(3.7588)
= $42.90

Bottom border of price channel:

Exp(Y1,196)
= Exp(a + b × X1,196 – 2 × s)
= Exp(a + b × 1,738 – 2 × s)
= Exp(2.4700 + 0.0006 × 1,738 – 2 × 0.1098)
= Exp(3.3196)
= $27.65

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 25.18% per annum.
  • UPBD price at the close of December 2, 2024 was $34.59 and was inside the primary price channel.

Secondary Trend

Start date: December 13, 2023
End date: November 5, 2024

a = 3.8530

b = -0.0002

s = 0.0467

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -8.65%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0467) – 1
= 20.52%

December 13, 2023 calculations

Top border of price channel:

Exp(Y1,014)
= Exp(a + b × X1,014 + 2 × s)
= Exp(a + b × 1,471 + 2 × s)
= Exp(3.8530 + -0.0002 × 1,471 + 2 × 0.0467)
= Exp(3.5816)
= $35.93

Bottom border of price channel:

Exp(Y1,014)
= Exp(a + b × X1,014 – 2 × s)
= Exp(a + b × 1,471 – 2 × s)
= Exp(3.8530 + -0.0002 × 1,471 – 2 × 0.0467)
= Exp(3.3950)
= $29.81

November 5, 2024 calculations

Top border of price channel:

Exp(Y1,239)
= Exp(a + b × X1,239 + 2 × s)
= Exp(a + b × 1,799 + 2 × s)
= Exp(3.8530 + -0.0002 × 1,799 + 2 × 0.0467)
= Exp(3.5002)
= $33.12

Bottom border of price channel:

Exp(Y1,239)
= Exp(a + b × X1,239 – 2 × s)
= Exp(a + b × 1,799 – 2 × s)
= Exp(3.8530 + -0.0002 × 1,799 – 2 × 0.0467)
= Exp(3.3136)
= $27.48

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 8.65% per annum.
  • UPBD price at the close of December 2, 2024 was higher than the top border of the secondary price channel by $1.69 (5.13%). This indicates a possible reversal in the secondary trend direction.

See Also