Stock Price Trends

Lamar Advertising Company (LAMR)

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with more than 357,500 displays in the United States and Canada.

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 59.34% per annum.
  • LAMR price at the close of July 26, 2024 was $120.47 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 12.39% per annum.
  • LAMR price at the close of July 26, 2024 was inside the secondary price channel.

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 LAMR 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: August 4, 2023
End date: July 26, 2024

a = 2.5174

b = 0.0013

s = 0.0561

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0013) – 1
= 59.34%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0561) – 1
= 25.16%

August 4, 2023 calculations

Top border of price channel:

Exp(Y1,012)
= Exp(a + b × X1,012 + 2 × s)
= Exp(a + b × 1,467 + 2 × s)
= Exp(2.5174 + 0.0013 × 1,467 + 2 × 0.0561)
= Exp(4.5020)
= $90.20

Bottom border of price channel:

Exp(Y1,012)
= Exp(a + b × X1,012 – 2 × s)
= Exp(a + b × 1,467 – 2 × s)
= Exp(2.5174 + 0.0013 × 1,467 – 2 × 0.0561)
= Exp(4.2776)
= $72.07

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(2.5174 + 0.0013 × 1,824 + 2 × 0.0561)
= Exp(4.9576)
= $142.26

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(2.5174 + 0.0013 × 1,824 – 2 × 0.0561)
= Exp(4.7332)
= $113.66

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 59.34% per annum.
  • LAMR price at the close of July 26, 2024 was $120.47 and was inside the primary price channel.

Secondary Trend

Start date: March 4, 2024
End date: July 26, 2024

a = 4.1927

b = 0.0003

s = 0.0191

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 12.39%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0191) – 1
= 7.96%

March 4, 2024 calculations

Top border of price channel:

Exp(Y1,157)
= Exp(a + b × X1,157 + 2 × s)
= Exp(a + b × 1,680 + 2 × s)
= Exp(4.1927 + 0.0003 × 1,680 + 2 × 0.0191)
= Exp(4.7685)
= $117.75

Bottom border of price channel:

Exp(Y1,157)
= Exp(a + b × X1,157 – 2 × s)
= Exp(a + b × 1,680 – 2 × s)
= Exp(4.1927 + 0.0003 × 1,680 – 2 × 0.0191)
= Exp(4.6920)
= $109.07

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.1927 + 0.0003 × 1,824 + 2 × 0.0191)
= Exp(4.8146)
= $123.30

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.1927 + 0.0003 × 1,824 – 2 × 0.0191)
= Exp(4.7380)
= $114.21

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 12.39% per annum.
  • LAMR price at the close of July 26, 2024 was inside the secondary price channel.