Stock Price Trends

Kenvue Inc. (KVUE)

Kenvue Inc. is a consumer health company globally.

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 7.48% per annum.
  • KVUE price at the close of May 8, 2024 was $20.45 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 18.61% per annum.
  • KVUE price at the close of May 8, 2024 was higher than the top border of the secondary price channel by $0.02 (0.10%). 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 KVUE 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: September 18, 2023
End date: April 10, 2024

a = 2.9381

b = 0.0002

s = 0.0403

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 7.48%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0403) – 1
= 17.51%

September 18, 2023 calculations

Top border of price channel:

Exp(Y93)
= Exp(a + b × X93 + 2 × s)
= Exp(a + b × 137 + 2 × s)
= Exp(2.9381 + 0.0002 × 137 + 2 × 0.0403)
= Exp(3.0458)
= $21.03

Bottom border of price channel:

Exp(Y93)
= Exp(a + b × X93 – 2 × s)
= Exp(a + b × 137 – 2 × s)
= Exp(2.9381 + 0.0002 × 137 – 2 × 0.0403)
= Exp(2.8845)
= $17.89

April 10, 2024 calculations

Top border of price channel:

Exp(Y234)
= Exp(a + b × X234 + 2 × s)
= Exp(a + b × 342 + 2 × s)
= Exp(2.9381 + 0.0002 × 342 + 2 × 0.0403)
= Exp(3.0863)
= $21.90

Bottom border of price channel:

Exp(Y234)
= Exp(a + b × X234 – 2 × s)
= Exp(a + b × 342 – 2 × s)
= Exp(2.9381 + 0.0002 × 342 – 2 × 0.0403)
= Exp(2.9249)
= $18.63

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 7.48% per annum.
  • KVUE price at the close of May 8, 2024 was $20.45 and was inside the primary price channel.

Secondary Trend

Start date: December 7, 2023
End date: May 6, 2024

a = 3.1577

b = -0.0006

s = 0.0340

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -18.61%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0340) – 1
= 14.57%

December 7, 2023 calculations

Top border of price channel:

Exp(Y150)
= Exp(a + b × X150 + 2 × s)
= Exp(a + b × 217 + 2 × s)
= Exp(3.1577 + -0.0006 × 217 + 2 × 0.0340)
= Exp(3.1033)
= $22.27

Bottom border of price channel:

Exp(Y150)
= Exp(a + b × X150 – 2 × s)
= Exp(a + b × 217 – 2 × s)
= Exp(3.1577 + -0.0006 × 217 – 2 × 0.0340)
= Exp(2.9673)
= $19.44

May 6, 2024 calculations

Top border of price channel:

Exp(Y252)
= Exp(a + b × X252 + 2 × s)
= Exp(a + b × 368 + 2 × s)
= Exp(3.1577 + -0.0006 × 368 + 2 × 0.0340)
= Exp(3.0181)
= $20.45

Bottom border of price channel:

Exp(Y252)
= Exp(a + b × X252 – 2 × s)
= Exp(a + b × 368 – 2 × s)
= Exp(3.1577 + -0.0006 × 368 – 2 × 0.0340)
= Exp(2.8821)
= $17.85

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 18.61% per annum.
  • KVUE price at the close of May 8, 2024 was higher than the top border of the secondary price channel by $0.02 (0.10%). This indicates a possible reversal in the secondary trend direction.