Cars.com Inc (CARS)
Cars.com, LLC, is a digital marketplace and provides solutions for the automotive industry. The company is headquartered in Chicago, 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 25.29% per annum.
- CARS price at the close of May 6, 2024 was $17.38 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 209.07% per annum.
- CARS price at the close of May 6, 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 CARS 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 7, 2023
End date: May 6, 2024
a = 4.2747
b = -0.0008
s = 0.0336
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0008) – 1
= -25.29%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0336) – 1
= 14.37%
November 7, 2023 calculations
Top border of price channel:
Exp(Y1,135)
= Exp(a + b × X1,135 + 2 × s)
= Exp(a + b × 1,645 + 2 × s)
= Exp(4.2747 + -0.0008 × 1,645 + 2 × 0.0336)
= Exp(3.0280)
= $20.66
Bottom border of price channel:
Exp(Y1,135)
= Exp(a + b × X1,135 – 2 × s)
= Exp(a + b × 1,645 – 2 × s)
= Exp(4.2747 + -0.0008 × 1,645 – 2 × 0.0336)
= Exp(2.8937)
= $18.06
May 6, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(4.2747 + -0.0008 × 1,826 + 2 × 0.0336)
= Exp(2.8834)
= $17.88
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.2747 + -0.0008 × 1,826 – 2 × 0.0336)
= Exp(2.7492)
= $15.63
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 25.29% per annum.
- CARS price at the close of May 6, 2024 was $17.38 and was inside the primary price channel.
Secondary Trend
Start date: April 15, 2024
End date: May 6, 2024
a = -2.7971
b = 0.0031
s = 0.0114
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0031) – 1
= 209.07%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0114) – 1
= 4.68%
April 15, 2024 calculations
Top border of price channel:
Exp(Y1,243)
= Exp(a + b × X1,243 + 2 × s)
= Exp(a + b × 1,805 + 2 × s)
= Exp(-2.7971 + 0.0031 × 1,805 + 2 × 0.0114)
= Exp(2.8060)
= $16.54
Bottom border of price channel:
Exp(Y1,243)
= Exp(a + b × X1,243 – 2 × s)
= Exp(a + b × 1,805 – 2 × s)
= Exp(-2.7971 + 0.0031 × 1,805 – 2 × 0.0114)
= Exp(2.7603)
= $15.81
May 6, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(-2.7971 + 0.0031 × 1,826 + 2 × 0.0114)
= Exp(2.8709)
= $17.65
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-2.7971 + 0.0031 × 1,826 – 2 × 0.0114)
= Exp(2.8253)
= $16.87
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 209.07% per annum.
- CARS price at the close of May 6, 2024 was inside the secondary price channel.