Stock Price Trends

Jack Henry & Associates Inc (JKHY)

Jack Henry & Associates, Inc. is a technology company and payment processing service for the financial services industry.

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 14.78% per annum.
  • JKHY price at the close of July 25, 2024 was $167.48 and was higher than the top border of the primary price channel by $18.06 (12.09%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 9.37% per annum.
  • JKHY 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 JKHY 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 1, 2022
End date: November 30, 2023

a = 5.6860

b = -0.0004

s = 0.0604

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0004) – 1
= -14.78%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0604) – 1
= 27.33%

March 1, 2022 calculations

Top border of price channel:

Exp(Y654)
= Exp(a + b × X654 + 2 × s)
= Exp(a + b × 949 + 2 × s)
= Exp(5.6860 + -0.0004 × 949 + 2 × 0.0604)
= Exp(5.3910)
= $219.42

Bottom border of price channel:

Exp(Y654)
= Exp(a + b × X654 – 2 × s)
= Exp(a + b × 949 – 2 × s)
= Exp(5.6860 + -0.0004 × 949 – 2 × 0.0604)
= Exp(5.1494)
= $172.32

November 30, 2023 calculations

Top border of price channel:

Exp(Y1,095)
= Exp(a + b × X1,095 + 2 × s)
= Exp(a + b × 1,588 + 2 × s)
= Exp(5.6860 + -0.0004 × 1,588 + 2 × 0.0604)
= Exp(5.1110)
= $165.84

Bottom border of price channel:

Exp(Y1,095)
= Exp(a + b × X1,095 – 2 × s)
= Exp(a + b × 1,588 – 2 × s)
= Exp(5.6860 + -0.0004 × 1,588 – 2 × 0.0604)
= Exp(4.8694)
= $130.24

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 14.78% per annum.
  • JKHY price at the close of July 25, 2024 was $167.48 and was higher than the top border of the primary price channel by $18.06 (12.09%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: March 10, 2023
End date: July 25, 2024

a = 4.6840

b = 0.0002

s = 0.0484

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 9.37%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0484) – 1
= 21.38%

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(4.6840 + 0.0002 × 1,323 + 2 × 0.0484)
= Exp(5.1056)
= $164.94

Bottom border of price channel:

Exp(Y912)
= Exp(a + b × X912 – 2 × s)
= Exp(a + b × 1,323 – 2 × s)
= Exp(4.6840 + 0.0002 × 1,323 – 2 × 0.0484)
= Exp(4.9118)
= $135.89

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(4.6840 + 0.0002 × 1,826 + 2 × 0.0484)
= Exp(5.2291)
= $186.62

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.6840 + 0.0002 × 1,826 – 2 × 0.0484)
= Exp(5.0353)
= $153.75

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 9.37% per annum.
  • JKHY price at the close of July 25, 2024 was inside the secondary price channel.