Kimberly-Clark Corporation (KMB)
Kimberly-Clark Corporation is an American multinational personal care corporation that produces mostly paper-based consumer products. The company manufactures sanitary paper products and surgical & medical instruments. Kimberly-Clark brand name products include Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrex toilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes and Huggies disposable diapers and baby wipes.
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 72.44% per annum.
- KMB price at the close of May 7, 2024 was $135.98 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 8.50% per annum.
- KMB price at the close of May 7, 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 KMB 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: February 5, 2024
End date: May 7, 2024
a = 2.1760
b = 0.0015
s = 0.0202
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0015) – 1
= 72.44%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0202) – 1
= 8.41%
February 5, 2024 calculations
Top border of price channel:
Exp(Y1,194)
= Exp(a + b × X1,194 + 2 × s)
= Exp(a + b × 1,734 + 2 × s)
= Exp(2.1760 + 0.0015 × 1,734 + 2 × 0.0202)
= Exp(4.8050)
= $122.12
Bottom border of price channel:
Exp(Y1,194)
= Exp(a + b × X1,194 – 2 × s)
= Exp(a + b × 1,734 – 2 × s)
= Exp(2.1760 + 0.0015 × 1,734 – 2 × 0.0202)
= Exp(4.7242)
= $112.64
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(2.1760 + 0.0015 × 1,826 + 2 × 0.0202)
= Exp(4.9423)
= $140.09
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.1760 + 0.0015 × 1,826 – 2 × 0.0202)
= Exp(4.8615)
= $129.22
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 72.44% per annum.
- KMB price at the close of May 7, 2024 was $135.98 and was inside the primary price channel.
Secondary Trend
Start date: April 23, 2024
End date: May 7, 2024
a = 5.3572
b = -0.0002
s = 0.0047
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -8.50%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0047) – 1
= 1.88%
April 23, 2024 calculations
Top border of price channel:
Exp(Y1,248)
= Exp(a + b × X1,248 + 2 × s)
= Exp(a + b × 1,812 + 2 × s)
= Exp(5.3572 + -0.0002 × 1,812 + 2 × 0.0047)
= Exp(4.9256)
= $137.77
Bottom border of price channel:
Exp(Y1,248)
= Exp(a + b × X1,248 – 2 × s)
= Exp(a + b × 1,812 – 2 × s)
= Exp(5.3572 + -0.0002 × 1,812 – 2 × 0.0047)
= Exp(4.9069)
= $135.22
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(5.3572 + -0.0002 × 1,826 + 2 × 0.0047)
= Exp(4.9222)
= $137.30
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.3572 + -0.0002 × 1,826 – 2 × 0.0047)
= Exp(4.9035)
= $134.76
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 8.50% per annum.
- KMB price at the close of May 7, 2024 was inside the secondary price channel.