GameStop Corp (GME)
GameStop Corp. The company is headquartered in Grapevine, Texas.
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 36.43% per annum.
- GME price at the close of July 25, 2024 was $23.95 and was higher than the top border of the primary price channel by $7.51 (45.69%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 104.76% per annum.
- GME price at the close of July 25, 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 GME 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: March 5, 2021
End date: May 8, 2024
a = 4.7208
b = -0.0012
s = 0.1728
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -36.43%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1728) – 1
= 99.58%
March 5, 2021 calculations
Top border of price channel:
Exp(Y405)
= Exp(a + b × X405 + 2 × s)
= Exp(a + b × 588 + 2 × s)
= Exp(4.7208 + -0.0012 × 588 + 2 × 0.1728)
= Exp(4.3364)
= $76.43
Bottom border of price channel:
Exp(Y405)
= Exp(a + b × X405 – 2 × s)
= Exp(a + b × 588 – 2 × s)
= Exp(4.7208 + -0.0012 × 588 – 2 × 0.1728)
= Exp(3.6453)
= $38.30
May 8, 2024 calculations
Top border of price channel:
Exp(Y1,204)
= Exp(a + b × X1,204 + 2 × s)
= Exp(a + b × 1,748 + 2 × s)
= Exp(4.7208 + -0.0012 × 1,748 + 2 × 0.1728)
= Exp(2.8965)
= $18.11
Bottom border of price channel:
Exp(Y1,204)
= Exp(a + b × X1,204 – 2 × s)
= Exp(a + b × 1,748 – 2 × s)
= Exp(4.7208 + -0.0012 × 1,748 – 2 × 0.1728)
= Exp(2.2054)
= $9.07
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 36.43% per annum.
- GME price at the close of July 25, 2024 was $23.95 and was higher than the top border of the primary price channel by $7.51 (45.69%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: October 2, 2023
End date: July 25, 2024
a = -0.5022
b = 0.0020
s = 0.2526
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0020) – 1
= 104.76%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.2526) – 1
= 174.63%
October 2, 2023 calculations
Top border of price channel:
Exp(Y1,053)
= Exp(a + b × X1,053 + 2 × s)
= Exp(a + b × 1,529 + 2 × s)
= Exp(-0.5022 + 0.0020 × 1,529 + 2 × 0.2526)
= Exp(3.0050)
= $20.19
Bottom border of price channel:
Exp(Y1,053)
= Exp(a + b × X1,053 – 2 × s)
= Exp(a + b × 1,529 – 2 × s)
= Exp(-0.5022 + 0.0020 × 1,529 – 2 × 0.2526)
= Exp(1.9948)
= $7.35
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(-0.5022 + 0.0020 × 1,826 + 2 × 0.2526)
= Exp(3.5882)
= $36.17
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-0.5022 + 0.0020 × 1,826 – 2 × 0.2526)
= Exp(2.5779)
= $13.17
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 104.76% per annum.
- GME price at the close of July 25, 2024 was inside the secondary price channel.