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 36.53% per annum.
- GME price at the close of May 7, 2024 was $16.31 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 52.06% per annum.
- GME price at the close of May 7, 2024 was higher than the top border of the secondary price channel by $1.62 (11.04%). This indicates a possible reversal in the secondary trend direction.
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 8, 2021
End date: May 7, 2024
a = 4.8245
b = -0.0012
s = 0.1721
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0012) – 1
= -36.53%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1721) – 1
= 99.02%
March 8, 2021 calculations
Top border of price channel:
Exp(Y461)
= Exp(a + b × X461 + 2 × s)
= Exp(a + b × 670 + 2 × s)
= Exp(4.8245 + -0.0012 × 670 + 2 × 0.1721)
= Exp(4.3341)
= $76.25
Bottom border of price channel:
Exp(Y461)
= Exp(a + b × X461 – 2 × s)
= Exp(a + b × 670 – 2 × s)
= Exp(4.8245 + -0.0012 × 670 – 2 × 0.1721)
= Exp(3.6458)
= $38.31
May 7, 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(4.8245 + -0.0012 × 1,826 + 2 × 0.1721)
= Exp(2.8941)
= $18.07
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.8245 + -0.0012 × 1,826 – 2 × 0.1721)
= Exp(2.2058)
= $9.08
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 36.53% per annum.
- GME price at the close of May 7, 2024 was $16.31 and was inside the primary price channel.
Secondary Trend
Start date: May 15, 2023
End date: May 7, 2024
a = 6.1116
b = -0.0020
s = 0.1266
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0020) – 1
= -52.06%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1266) – 1
= 65.92%
May 15, 2023 calculations
Top border of price channel:
Exp(Y1,012)
= Exp(a + b × X1,012 + 2 × s)
= Exp(a + b × 1,468 + 2 × s)
= Exp(6.1116 + -0.0020 × 1,468 + 2 × 0.1266)
= Exp(3.4081)
= $30.21
Bottom border of price channel:
Exp(Y1,012)
= Exp(a + b × X1,012 – 2 × s)
= Exp(a + b × 1,468 – 2 × s)
= Exp(6.1116 + -0.0020 × 1,468 – 2 × 0.1266)
= Exp(2.9018)
= $18.21
May 7, 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(6.1116 + -0.0020 × 1,826 + 2 × 0.1266)
= Exp(2.6870)
= $14.69
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(6.1116 + -0.0020 × 1,826 – 2 × 0.1266)
= Exp(2.1807)
= $8.85
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 52.06% per annum.
- GME price at the close of May 7, 2024 was higher than the top border of the secondary price channel by $1.62 (11.04%). This indicates a possible reversal in the secondary trend direction.