Nike Inc (NKE)
Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment.
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 11.99% per annum.
- NKE price at the close of May 2, 2024 was $92.41 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 43.34% per annum.
- NKE price at the close of May 2, 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 NKE 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: December 3, 2020
End date: May 2, 2024
a = 5.2069
b = -0.0003
s = 0.1181
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -11.99%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1181) – 1
= 60.38%
December 3, 2020 calculations
Top border of price channel:
Exp(Y401)
= Exp(a + b × X401 + 2 × s)
= Exp(a + b × 580 + 2 × s)
= Exp(5.2069 + -0.0003 × 580 + 2 × 0.1181)
= Exp(5.2401)
= $188.70
Bottom border of price channel:
Exp(Y401)
= Exp(a + b × X401 – 2 × s)
= Exp(a + b × 580 – 2 × s)
= Exp(5.2069 + -0.0003 × 580 – 2 × 0.1181)
= Exp(4.7678)
= $117.66
May 2, 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(5.2069 + -0.0003 × 1,826 + 2 × 0.1181)
= Exp(4.8042)
= $122.03
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.2069 + -0.0003 × 1,826 – 2 × 0.1181)
= Exp(4.3319)
= $76.09
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 11.99% per annum.
- NKE price at the close of May 2, 2024 was $92.41 and was inside the primary price channel.
Secondary Trend
Start date: December 1, 2023
End date: May 2, 2024
a = 7.3476
b = -0.0016
s = 0.0389
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0016) – 1
= -43.34%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0389) – 1
= 16.81%
December 1, 2023 calculations
Top border of price channel:
Exp(Y1,154)
= Exp(a + b × X1,154 + 2 × s)
= Exp(a + b × 1,673 + 2 × s)
= Exp(7.3476 + -0.0016 × 1,673 + 2 × 0.0389)
= Exp(4.8217)
= $124.17
Bottom border of price channel:
Exp(Y1,154)
= Exp(a + b × X1,154 – 2 × s)
= Exp(a + b × 1,673 – 2 × s)
= Exp(7.3476 + -0.0016 × 1,673 – 2 × 0.0389)
= Exp(4.6663)
= $106.30
May 2, 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(7.3476 + -0.0016 × 1,826 + 2 × 0.0389)
= Exp(4.5836)
= $97.86
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(7.3476 + -0.0016 × 1,826 – 2 × 0.0389)
= Exp(4.4281)
= $83.78
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 43.34% per annum.
- NKE price at the close of May 2, 2024 was inside the secondary price channel.