Stock Price Trends

Hilton Grand Vacations Inc (HGV)

Hilton Grand Vacations Inc., a timeshare company, develops, markets, sells and manages vacation-owned resorts primarily under the Hilton Grand Vacations brand. The company is headquartered in Orlando, Florida.

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 3.25% per annum.
  • HGV price at the close of May 10, 2024 was $42.12 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 56.98% per annum.
  • HGV price at the close of May 10, 2024 was lower than the bottom border of the secondary price channel by $0.12 (0.29%). This indicates a possible reversal in the secondary trend direction.
  • 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 HGV 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: April 16, 2021
End date: May 10, 2024

a = 3.8896

b = -0.0001

s = 0.0995

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -3.25%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0995) – 1
= 48.90%

April 16, 2021 calculations

Top border of price channel:

Exp(Y486)
= Exp(a + b × X486 + 2 × s)
= Exp(a + b × 704 + 2 × s)
= Exp(3.8896 + -0.0001 × 704 + 2 × 0.0995)
= Exp(4.0251)
= $55.98

Bottom border of price channel:

Exp(Y486)
= Exp(a + b × X486 – 2 × s)
= Exp(a + b × 704 – 2 × s)
= Exp(3.8896 + -0.0001 × 704 – 2 × 0.0995)
= Exp(3.6269)
= $37.60

May 10, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(3.8896 + -0.0001 × 1,824 + 2 × 0.0995)
= Exp(3.9238)
= $50.59

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(3.8896 + -0.0001 × 1,824 – 2 × 0.0995)
= Exp(3.5257)
= $33.98

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 3.25% per annum.
  • HGV price at the close of May 10, 2024 was $42.12 and was inside the primary price channel.

Secondary Trend

Start date: October 5, 2023
End date: May 10, 2024

a = 1.5968

b = 0.0012

s = 0.0533

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0012) – 1
= 56.98%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0533) – 1
= 23.78%

October 5, 2023 calculations

Top border of price channel:

Exp(Y1,108)
= Exp(a + b × X1,108 + 2 × s)
= Exp(a + b × 1,606 + 2 × s)
= Exp(1.5968 + 0.0012 × 1,606 + 2 × 0.0533)
= Exp(3.6875)
= $39.94

Bottom border of price channel:

Exp(Y1,108)
= Exp(a + b × X1,108 – 2 × s)
= Exp(a + b × 1,606 – 2 × s)
= Exp(1.5968 + 0.0012 × 1,606 – 2 × 0.0533)
= Exp(3.4741)
= $32.27

May 10, 2024 calculations

Top border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(1.5968 + 0.0012 × 1,824 + 2 × 0.0533)
= Exp(3.9568)
= $52.29

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(1.5968 + 0.0012 × 1,824 – 2 × 0.0533)
= Exp(3.7435)
= $42.24

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 56.98% per annum.
  • HGV price at the close of May 10, 2024 was lower than the bottom border of the secondary price channel by $0.12 (0.29%). This indicates a possible reversal in the secondary trend direction.