Stock Price Trends

Encore Capital Group Inc (ECPG)

Encore Capital Group, Inc., a specialty finance company, offers debt recovery solutions and other related services to consumers in a variety of financial assets worldwide. The company is headquartered in San Diego, California.

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 13.42% per annum.
  • ECPG price at the close of July 26, 2024 was $50.30 and was higher than the top border of the primary price channel by $0.67 (1.34%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 1,567.60% per annum.
  • ECPG 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 ECPG 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 4, 2021
End date: July 15, 2024

a = 4.4645

b = -0.0004

s = 0.0802

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -13.42%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0802) – 1
= 37.83%

November 4, 2021 calculations

Top border of price channel:

Exp(Y574)
= Exp(a + b × X574 + 2 × s)
= Exp(a + b × 829 + 2 × s)
= Exp(4.4645 + -0.0004 × 829 + 2 × 0.0802)
= Exp(4.2976)
= $73.52

Bottom border of price channel:

Exp(Y574)
= Exp(a + b × X574 – 2 × s)
= Exp(a + b × 829 – 2 × s)
= Exp(4.4645 + -0.0004 × 829 – 2 × 0.0802)
= Exp(3.9767)
= $53.34

July 15, 2024 calculations

Top border of price channel:

Exp(Y1,248)
= Exp(a + b × X1,248 + 2 × s)
= Exp(a + b × 1,813 + 2 × s)
= Exp(4.4645 + -0.0004 × 1,813 + 2 × 0.0802)
= Exp(3.9090)
= $49.85

Bottom border of price channel:

Exp(Y1,248)
= Exp(a + b × X1,248 – 2 × s)
= Exp(a + b × 1,813 – 2 × s)
= Exp(4.4645 + -0.0004 × 1,813 – 2 × 0.0802)
= Exp(3.5882)
= $36.17

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 13.42% per annum.
  • ECPG price at the close of July 26, 2024 was $50.30 and was higher than the top border of the primary price channel by $0.67 (1.34%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: June 25, 2024
End date: July 26, 2024

a = -10.1464

b = 0.0077

s = 0.0277

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0077) – 1
= 1,567.60%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0277) – 1
= 11.73%

June 25, 2024 calculations

Top border of price channel:

Exp(Y1,235)
= Exp(a + b × X1,235 + 2 × s)
= Exp(a + b × 1,793 + 2 × s)
= Exp(-10.1464 + 0.0077 × 1,793 + 2 × 0.0277)
= Exp(3.7322)
= $41.77

Bottom border of price channel:

Exp(Y1,235)
= Exp(a + b × X1,235 – 2 × s)
= Exp(a + b × 1,793 – 2 × s)
= Exp(-10.1464 + 0.0077 × 1,793 – 2 × 0.0277)
= Exp(3.6213)
= $37.39

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(-10.1464 + 0.0077 × 1,824 + 2 × 0.0277)
= Exp(3.9712)
= $53.05

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(-10.1464 + 0.0077 × 1,824 – 2 × 0.0277)
= Exp(3.8603)
= $47.48

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 1,567.60% per annum.
  • ECPG price at the close of July 26, 2024 was inside the secondary price channel.