Stock Price Trends

Brighthouse Financial Inc (BHF)

Brighthouse Financial, Inc. offers life insurance and annuity products in the United States. The company is headquartered in Charlotte, North Carolina.

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 0.30% per annum.
  • BHF price at the close of July 26, 2024 was $49.10 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 25.13% per annum.
  • BHF price at the close of July 26, 2024 was higher than the top border of the secondary price channel by $0.73 (1.50%). 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 BHF 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 1, 2021
End date: July 26, 2024

a = 3.8907

b = 0.0000

s = 0.0915

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= -0.30%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0915) – 1
= 44.22%

April 1, 2021 calculations

Top border of price channel:

Exp(Y423)
= Exp(a + b × X423 + 2 × s)
= Exp(a + b × 612 + 2 × s)
= Exp(3.8907 + 0.0000 × 612 + 2 × 0.0915)
= Exp(4.0688)
= $58.49

Bottom border of price channel:

Exp(Y423)
= Exp(a + b × X423 – 2 × s)
= Exp(a + b × 612 – 2 × s)
= Exp(3.8907 + 0.0000 × 612 – 2 × 0.0915)
= Exp(3.7027)
= $40.56

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(3.8907 + 0.0000 × 1,824 + 2 × 0.0915)
= Exp(4.0590)
= $57.92

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.8907 + 0.0000 × 1,824 – 2 × 0.0915)
= Exp(3.6928)
= $40.16

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 0.30% per annum.
  • BHF price at the close of July 26, 2024 was $49.10 and was inside the primary price channel.

Secondary Trend

Start date: November 24, 2023
End date: July 26, 2024

a = 5.2287

b = -0.0008

s = 0.0483

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0008) – 1
= -25.13%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0483) – 1
= 21.30%

November 24, 2023 calculations

Top border of price channel:

Exp(Y1,090)
= Exp(a + b × X1,090 + 2 × s)
= Exp(a + b × 1,579 + 2 × s)
= Exp(5.2287 + -0.0008 × 1,579 + 2 × 0.0483)
= Exp(4.0732)
= $58.75

Bottom border of price channel:

Exp(Y1,090)
= Exp(a + b × X1,090 – 2 × s)
= Exp(a + b × 1,579 – 2 × s)
= Exp(5.2287 + -0.0008 × 1,579 – 2 × 0.0483)
= Exp(3.8802)
= $48.43

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(5.2287 + -0.0008 × 1,824 + 2 × 0.0483)
= Exp(3.8790)
= $48.37

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(5.2287 + -0.0008 × 1,824 – 2 × 0.0483)
= Exp(3.6859)
= $39.88

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 25.13% per annum.
  • BHF price at the close of July 26, 2024 was higher than the top border of the secondary price channel by $0.73 (1.50%). This indicates a possible reversal in the secondary trend direction.