Stock Price Trends

Wingstop Inc (WING)

Wingstop Inc., franchises and operates restaurants under the Wingstop brand. The company is headquartered in Dallas, 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 89.54% per annum.
  • WING price at the close of November 19, 2024 was $335.58 and was lower than the bottom border of the primary price channel by $15.43 (4.40%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 16.21% per annum.
  • WING price at the close of November 19, 2024 was lower than the bottom border of the secondary price channel by $29.12 (7.98%). This indicates a possible reversal in the secondary trend direction.

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 WING 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: April 11, 2022
End date: October 18, 2024

a = 2.9531

b = 0.0018

s = 0.1457

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 89.54%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1457) – 1
= 79.08%

April 11, 2022 calculations

Top border of price channel:

Exp(Y601)
= Exp(a + b × X601 + 2 × s)
= Exp(a + b × 873 + 2 × s)
= Exp(2.9531 + 0.0018 × 873 + 2 × 0.1457)
= Exp(4.7739)
= $118.38

Bottom border of price channel:

Exp(Y601)
= Exp(a + b × X601 – 2 × s)
= Exp(a + b × 873 – 2 × s)
= Exp(2.9531 + 0.0018 × 873 – 2 × 0.1457)
= Exp(4.1912)
= $66.10

October 18, 2024 calculations

Top border of price channel:

Exp(Y1,235)
= Exp(a + b × X1,235 + 2 × s)
= Exp(a + b × 1,794 + 2 × s)
= Exp(2.9531 + 0.0018 × 1,794 + 2 × 0.1457)
= Exp(6.3874)
= $594.31

Bottom border of price channel:

Exp(Y1,235)
= Exp(a + b × X1,235 – 2 × s)
= Exp(a + b × 1,794 – 2 × s)
= Exp(2.9531 + 0.0018 × 1,794 – 2 × 0.1457)
= Exp(5.8047)
= $331.87

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 89.54% per annum.
  • WING price at the close of November 19, 2024 was $335.58 and was lower than the bottom border of the primary price channel by $15.43 (4.40%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: February 26, 2024
End date: October 29, 2024

a = 5.2504

b = 0.0004

s = 0.0514

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.21%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0514) – 1
= 22.80%

February 26, 2024 calculations

Top border of price channel:

Exp(Y1,071)
= Exp(a + b × X1,071 + 2 × s)
= Exp(a + b × 1,559 + 2 × s)
= Exp(5.2504 + 0.0004 × 1,559 + 2 × 0.0514)
= Exp(5.9946)
= $401.26

Bottom border of price channel:

Exp(Y1,071)
= Exp(a + b × X1,071 – 2 × s)
= Exp(a + b × 1,559 – 2 × s)
= Exp(5.2504 + 0.0004 × 1,559 – 2 × 0.0514)
= Exp(5.7892)
= $326.75

October 29, 2024 calculations

Top border of price channel:

Exp(Y1,242)
= Exp(a + b × X1,242 + 2 × s)
= Exp(a + b × 1,805 + 2 × s)
= Exp(5.2504 + 0.0004 × 1,805 + 2 × 0.0514)
= Exp(6.0958)
= $444.01

Bottom border of price channel:

Exp(Y1,242)
= Exp(a + b × X1,242 – 2 × s)
= Exp(a + b × 1,805 – 2 × s)
= Exp(5.2504 + 0.0004 × 1,805 – 2 × 0.0514)
= Exp(5.8904)
= $361.56

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 16.21% per annum.
  • WING price at the close of November 19, 2024 was lower than the bottom border of the secondary price channel by $29.12 (7.98%). This indicates a possible reversal in the secondary trend direction.