# Carter’s Inc (CRI)

Carter's, Inc. designs, supplies, and markets branded children's clothing under the brands Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's little baby basics, and other brands in the United States and internationally. The company is headquartered in Atlanta, Georgia.

## 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 17.99% per annum.
- CRI price at the close of October 3, 2024 was $65.05 and was higher than the top border of the primary price channel by $10.23 (18.67%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 0.54% per annum.
- CRI price at the close of October 3, 2024 was inside the secondary price channel.

### Linear Regression Model

Model equation:

Y_{i} = α + β × X_{i} + ε_{i}

Top border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} + 2 × s)

Bottom border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} – 2 × s)

where:

i - observation number

Y_{i} - natural logarithm of CRI price

X_{i} - time index, 1 day interval

σ - standard deviation of ε_{i}

a - estimator of α

b - estimator of β

s - estimator of σ

Exp() - calculates the exponent of e

### Primary Trend

Start date: April 12, 2021

End date: June 28, 2023

a = 4.8588

b = -0.0005

s = 0.0686

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × -0.0005) – 1

= -17.99%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0686) – 1

= 31.57%

#### April 12, 2021 calculations

Top border of price channel:

Exp(Y_{381})

= Exp(a + b × X_{381} + 2 × s)

= Exp(a + b × 556 + 2 × s)

= Exp(4.8588 + -0.0005 × 556 + 2 × 0.0686)

= Exp(4.6939)

= $109.28

Bottom border of price channel:

Exp(Y_{381})

= Exp(a + b × X_{381} – 2 × s)

= Exp(a + b × 556 – 2 × s)

= Exp(4.8588 + -0.0005 × 556 – 2 × 0.0686)

= Exp(4.4195)

= $83.06

#### June 28, 2023 calculations

Top border of price channel:

Exp(Y_{938})

= Exp(a + b × X_{938} + 2 × s)

= Exp(a + b × 1,363 + 2 × s)

= Exp(4.8588 + -0.0005 × 1,363 + 2 × 0.0686)

= Exp(4.2555)

= $70.49

Bottom border of price channel:

Exp(Y_{938})

= Exp(a + b × X_{938} – 2 × s)

= Exp(a + b × 1,363 – 2 × s)

= Exp(4.8588 + -0.0005 × 1,363 – 2 × 0.0686)

= Exp(3.9811)

= $53.58

#### Description

- The primary trend is decreasing.
- The decline rate of the primary trend is 17.99% per annum.
- CRI price at the close of October 3, 2024 was $65.05 and was higher than the top border of the primary price channel by $10.23 (18.67%). This indicates a possible reversal in the primary trend direction.

### Secondary Trend

Start date: May 5, 2022

End date: October 3, 2024

a = 4.2395

b = 0.0000

s = 0.0757

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × 0.0000) – 1

= -0.54%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0757) – 1

= 35.39%

#### May 5, 2022 calculations

Top border of price channel:

Exp(Y_{651})

= Exp(a + b × X_{651} + 2 × s)

= Exp(a + b × 944 + 2 × s)

= Exp(4.2395 + 0.0000 × 944 + 2 × 0.0757)

= Exp(4.3770)

= $79.60

Bottom border of price channel:

Exp(Y_{651})

= Exp(a + b × X_{651} – 2 × s)

= Exp(a + b × 944 – 2 × s)

= Exp(4.2395 + 0.0000 × 944 – 2 × 0.0757)

= Exp(4.0741)

= $58.80

#### October 3, 2024 calculations

Top border of price channel:

Exp(Y_{1,257})

= Exp(a + b × X_{1,257} + 2 × s)

= Exp(a + b × 1,826 + 2 × s)

= Exp(4.2395 + 0.0000 × 1,826 + 2 × 0.0757)

= Exp(4.3639)

= $78.57

Bottom border of price channel:

Exp(Y_{1,257})

= Exp(a + b × X_{1,257} – 2 × s)

= Exp(a + b × 1,826 – 2 × s)

= Exp(4.2395 + 0.0000 × 1,826 – 2 × 0.0757)

= Exp(4.0610)

= $58.03

#### Description

- The secondary trend is decreasing.
- The decline rate of the secondary trend is 0.54% per annum.
- CRI price at the close of October 3, 2024 was inside the secondary price channel.