Brunswick Corporation (BC)
Brunswick Corporation designs, manufactures and markets recreational products worldwide. The company is headquartered in Mettawa, Illinois.
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 17.31% per annum.
- BC price at the close of July 26, 2024 was $79.98 and was higher than the top border of the primary price channel by $18.85 (30.84%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 10.94% per annum.
- BC price at the close of July 26, 2024 was inside the secondary price channel.
- 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 BC 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 11, 2021
End date: January 20, 2023
a = 4.8852
b = -0.0005
s = 0.0886
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0005) – 1
= -17.31%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0886) – 1
= 42.56%
January 11, 2021 calculations
Top border of price channel:
Exp(Y367)
= Exp(a + b × X367 + 2 × s)
= Exp(a + b × 532 + 2 × s)
= Exp(4.8852 + -0.0005 × 532 + 2 × 0.0886)
= Exp(4.7856)
= $119.77
Bottom border of price channel:
Exp(Y367)
= Exp(a + b × X367 – 2 × s)
= Exp(a + b × 532 – 2 × s)
= Exp(4.8852 + -0.0005 × 532 – 2 × 0.0886)
= Exp(4.4310)
= $84.02
January 20, 2023 calculations
Top border of price channel:
Exp(Y877)
= Exp(a + b × X877 + 2 × s)
= Exp(a + b × 1,271 + 2 × s)
= Exp(4.8852 + -0.0005 × 1,271 + 2 × 0.0886)
= Exp(4.4008)
= $81.52
Bottom border of price channel:
Exp(Y877)
= Exp(a + b × X877 – 2 × s)
= Exp(a + b × 1,271 – 2 × s)
= Exp(4.8852 + -0.0005 × 1,271 – 2 × 0.0886)
= Exp(4.0463)
= $57.18
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 17.31% per annum.
- BC price at the close of July 26, 2024 was $79.98 and was higher than the top border of the primary price channel by $18.85 (30.84%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: March 31, 2022
End date: June 3, 2024
a = 3.9590
b = 0.0003
s = 0.0749
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 10.94%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0749) – 1
= 34.93%
March 31, 2022 calculations
Top border of price channel:
Exp(Y675)
= Exp(a + b × X675 + 2 × s)
= Exp(a + b × 976 + 2 × s)
= Exp(3.9590 + 0.0003 × 976 + 2 × 0.0749)
= Exp(4.3864)
= $80.35
Bottom border of price channel:
Exp(Y675)
= Exp(a + b × X675 – 2 × s)
= Exp(a + b × 976 – 2 × s)
= Exp(3.9590 + 0.0003 × 976 – 2 × 0.0749)
= Exp(4.0868)
= $59.55
June 3, 2024 calculations
Top border of price channel:
Exp(Y1,220)
= Exp(a + b × X1,220 + 2 × s)
= Exp(a + b × 1,771 + 2 × s)
= Exp(3.9590 + 0.0003 × 1,771 + 2 × 0.0749)
= Exp(4.6124)
= $100.73
Bottom border of price channel:
Exp(Y1,220)
= Exp(a + b × X1,220 – 2 × s)
= Exp(a + b × 1,771 – 2 × s)
= Exp(3.9590 + 0.0003 × 1,771 – 2 × 0.0749)
= Exp(4.3128)
= $74.65
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 10.94% per annum.
- BC price at the close of July 26, 2024 was inside the secondary price channel.