Stock Price Trends

Domino’s Pizza Inc (DPZ)

Domino's Pizza, Inc., branded as Domino's, is an American multinational pizza restaurant chain founded in 1960. The corporation is headquartered at the Domino's Farms Office Park in Ann Arbor, Michigan.

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 97.39% per annum.
  • DPZ price at the close of May 9, 2024 was $517.26 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 141.46% per annum.
  • DPZ price at the close of May 9, 2024 was inside the secondary price channel.

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 DPZ 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: October 6, 2023
End date: May 9, 2024

a = 2.8363

b = 0.0019

s = 0.0273

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0019) – 1
= 97.39%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0273) – 1
= 11.55%

October 6, 2023 calculations

Top border of price channel:

Exp(Y1,110)
= Exp(a + b × X1,110 + 2 × s)
= Exp(a + b × 1,610 + 2 × s)
= Exp(2.8363 + 0.0019 × 1,610 + 2 × 0.0273)
= Exp(5.8904)
= $361.54

Bottom border of price channel:

Exp(Y1,110)
= Exp(a + b × X1,110 – 2 × s)
= Exp(a + b × 1,610 – 2 × s)
= Exp(2.8363 + 0.0019 × 1,610 – 2 × 0.0273)
= Exp(5.7811)
= $324.10

May 9, 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(2.8363 + 0.0019 × 1,826 + 2 × 0.0273)
= Exp(6.2928)
= $540.65

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.8363 + 0.0019 × 1,826 – 2 × 0.0273)
= Exp(6.1835)
= $484.67

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 97.39% per annum.
  • DPZ price at the close of May 9, 2024 was $517.26 and was inside the primary price channel.

Secondary Trend

Start date: February 5, 2024
End date: May 9, 2024

a = 1.8470

b = 0.0024

s = 0.0261

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0024) – 1
= 141.46%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0261) – 1
= 11.00%

February 5, 2024 calculations

Top border of price channel:

Exp(Y1,192)
= Exp(a + b × X1,192 + 2 × s)
= Exp(a + b × 1,732 + 2 × s)
= Exp(1.8470 + 0.0024 × 1,732 + 2 × 0.0261)
= Exp(6.0823)
= $438.04

Bottom border of price channel:

Exp(Y1,192)
= Exp(a + b × X1,192 – 2 × s)
= Exp(a + b × 1,732 – 2 × s)
= Exp(1.8470 + 0.0024 × 1,732 – 2 × 0.0261)
= Exp(5.9780)
= $394.64

May 9, 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(1.8470 + 0.0024 × 1,826 + 2 × 0.0261)
= Exp(6.3093)
= $549.69

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.8470 + 0.0024 × 1,826 – 2 × 0.0261)
= Exp(6.2050)
= $495.23

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 141.46% per annum.
  • DPZ price at the close of May 9, 2024 was inside the secondary price channel.