# Green Dot Corporation (GDOT)

Green Dot Corporation is a banking and fintech holding company in the United States. The company is headquartered in Pasadena, 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 42.34% per annum.
- GDOT price at the close of August 7, 2024 was $8.68 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 15.18% per annum.
- GDOT price at the close of August 7, 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:

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 GDOT 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: October 2, 2020

End date: August 7, 2024

a = 4.8277

b = -0.0015

s = 0.1357

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × -0.0015) – 1

= -42.34%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.1357) – 1

= 72.08%

#### October 2, 2020 calculations

Top border of price channel:

Exp(Y_{291})

= Exp(a + b × X_{291} + 2 × s)

= Exp(a + b × 421 + 2 × s)

= Exp(4.8277 + -0.0015 × 421 + 2 × 0.1357)

= Exp(4.4641)

= $86.84

Bottom border of price channel:

Exp(Y_{291})

= Exp(a + b × X_{291} – 2 × s)

= Exp(a + b × 421 – 2 × s)

= Exp(4.8277 + -0.0015 × 421 – 2 × 0.1357)

= Exp(3.9213)

= $50.46

#### August 7, 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(4.8277 + -0.0015 × 1,826 + 2 × 0.1357)

= Exp(2.3446)

= $10.43

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(4.8277 + -0.0015 × 1,826 – 2 × 0.1357)

= Exp(1.8018)

= $6.06

#### Description

- The primary trend is decreasing.
- The decline rate of the primary trend is 42.34% per annum.
- GDOT price at the close of August 7, 2024 was $8.68 and was inside the primary price channel.

### Secondary Trend

Start date: November 10, 2023

End date: August 7, 2024

a = 1.5495

b = 0.0004

s = 0.0614

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × 0.0004) – 1

= 15.18%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0614) – 1

= 27.83%

#### November 10, 2023 calculations

Top border of price channel:

Exp(Y_{1,073})

= Exp(a + b × X_{1,073} + 2 × s)

= Exp(a + b × 1,555 + 2 × s)

= Exp(1.5495 + 0.0004 × 1,555 + 2 × 0.0614)

= Exp(2.2742)

= $9.72

Bottom border of price channel:

Exp(Y_{1,073})

= Exp(a + b × X_{1,073} – 2 × s)

= Exp(a + b × 1,555 – 2 × s)

= Exp(1.5495 + 0.0004 × 1,555 – 2 × 0.0614)

= Exp(2.0287)

= $7.60

#### August 7, 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(1.5495 + 0.0004 × 1,826 + 2 × 0.0614)

= Exp(2.3791)

= $10.80

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(1.5495 + 0.0004 × 1,826 – 2 × 0.0614)

= Exp(2.1336)

= $8.44

#### Description

- The secondary trend is increasing.
- The growth rate of the secondary trend is 15.18% per annum.
- GDOT price at the close of August 7, 2024 was inside the secondary price channel.