Hanesbrands Inc (HBI)
Hanesbrands Inc. is an American multinational clothing company based in Winston-Salem, North Carolina.
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 48.23% per annum.
- HBI price at the close of July 25, 2024 was $5.67 and was higher than the top border of the primary price channel by $2.40 (73.47%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 4.46% per annum.
- HBI 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 HBI 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 2, 2021
End date: January 22, 2024
a = 4.2087
b = -0.0018
s = 0.1346
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0018) – 1
= -48.23%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1346) – 1
= 71.33%
March 2, 2021 calculations
Top border of price channel:
Exp(Y402)
= Exp(a + b × X402 + 2 × s)
= Exp(a + b × 585 + 2 × s)
= Exp(4.2087 + -0.0018 × 585 + 2 × 0.1346)
= Exp(3.4228)
= $30.65
Bottom border of price channel:
Exp(Y402)
= Exp(a + b × X402 – 2 × s)
= Exp(a + b × 585 – 2 × s)
= Exp(4.2087 + -0.0018 × 585 – 2 × 0.1346)
= Exp(2.8843)
= $17.89
January 22, 2024 calculations
Top border of price channel:
Exp(Y1,129)
= Exp(a + b × X1,129 + 2 × s)
= Exp(a + b × 1,641 + 2 × s)
= Exp(4.2087 + -0.0018 × 1,641 + 2 × 0.1346)
= Exp(1.5180)
= $4.56
Bottom border of price channel:
Exp(Y1,129)
= Exp(a + b × X1,129 – 2 × s)
= Exp(a + b × 1,641 – 2 × s)
= Exp(4.2087 + -0.0018 × 1,641 – 2 × 0.1346)
= Exp(0.9796)
= $2.66
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 48.23% per annum.
- HBI price at the close of July 25, 2024 was $5.67 and was higher than the top border of the primary price channel by $2.40 (73.47%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: March 10, 2023
End date: July 25, 2024
a = 1.3492
b = 0.0001
s = 0.1066
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 4.46%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1066) – 1
= 53.15%
March 10, 2023 calculations
Top border of price channel:
Exp(Y912)
= Exp(a + b × X912 + 2 × s)
= Exp(a + b × 1,323 + 2 × s)
= Exp(1.3492 + 0.0001 × 1,323 + 2 × 0.1066)
= Exp(1.7206)
= $5.59
Bottom border of price channel:
Exp(Y912)
= Exp(a + b × X912 – 2 × s)
= Exp(a + b × 1,323 – 2 × s)
= Exp(1.3492 + 0.0001 × 1,323 – 2 × 0.1066)
= Exp(1.2944)
= $3.65
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(1.3492 + 0.0001 × 1,826 + 2 × 0.1066)
= Exp(1.7808)
= $5.93
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(1.3492 + 0.0001 × 1,826 – 2 × 0.1066)
= Exp(1.3546)
= $3.88
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 4.46% per annum.
- HBI price at the close of July 25, 2024 was inside the secondary price channel.