Interpublic Group of Companies Inc (IPG)
The Interpublic Group of Companies, Inc. (IPG) is an American publicly traded advertising company. The company consists of five major networks: FCB, IPG Mediabrands, McCann Worldgroup, MullenLowe Group, and Marketing Specialists, as well as a number of independent specialty agencies in the areas of public relations, sports marketing, talent representation, and healthcare.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 0.22% per annum.
- IPG price at the close of July 25, 2024 was $30.26 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 10.92% per annum.
- IPG 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 IPG 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 28, 2021
End date: July 25, 2024
a = 3.4290
b = 0.0000
s = 0.0967
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 0.22%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0967) – 1
= 47.21%
April 28, 2021 calculations
Top border of price channel:
Exp(Y442)
= Exp(a + b × X442 + 2 × s)
= Exp(a + b × 642 + 2 × s)
= Exp(3.4290 + 0.0000 × 642 + 2 × 0.0967)
= Exp(3.6262)
= $37.57
Bottom border of price channel:
Exp(Y442)
= Exp(a + b × X442 – 2 × s)
= Exp(a + b × 642 – 2 × s)
= Exp(3.4290 + 0.0000 × 642 – 2 × 0.0967)
= Exp(3.2395)
= $25.52
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(3.4290 + 0.0000 × 1,826 + 2 × 0.0967)
= Exp(3.6332)
= $37.83
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.4290 + 0.0000 × 1,826 – 2 × 0.0967)
= Exp(3.2465)
= $25.70
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 0.22% per annum.
- IPG price at the close of July 25, 2024 was $30.26 and was inside the primary price channel.
Secondary Trend
Start date: January 6, 2023
End date: July 25, 2024
a = 3.9560
b = -0.0003
s = 0.0680
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.92%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0680) – 1
= 31.26%
January 6, 2023 calculations
Top border of price channel:
Exp(Y869)
= Exp(a + b × X869 + 2 × s)
= Exp(a + b × 1,260 + 2 × s)
= Exp(3.9560 + -0.0003 × 1,260 + 2 × 0.0680)
= Exp(3.6929)
= $40.16
Bottom border of price channel:
Exp(Y869)
= Exp(a + b × X869 – 2 × s)
= Exp(a + b × 1,260 – 2 × s)
= Exp(3.9560 + -0.0003 × 1,260 – 2 × 0.0680)
= Exp(3.4208)
= $30.59
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(3.9560 + -0.0003 × 1,826 + 2 × 0.0680)
= Exp(3.5136)
= $33.57
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.9560 + -0.0003 × 1,826 – 2 × 0.0680)
= Exp(3.2415)
= $25.57
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 10.92% per annum.
- IPG price at the close of July 25, 2024 was inside the secondary price channel.