Stock Price Trends

Penske Automotive Group Inc (PAG)

Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.

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 1.74% per annum.
  • PAG price at the close of April 28, 2025 was $157.86 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 6.16% per annum.
  • PAG price at the close of April 28, 2025 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 PAG 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: June 6, 2023
End date: April 28, 2025

a = 4.9640

b = 0.0000

s = 0.0488

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 1.74%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0488) – 1
= 21.56%

June 6, 2023 calculations

Top border of price channel:

Exp(Y781)
= Exp(a + b × X781 + 2 × s)
= Exp(a + b × 1,133 + 2 × s)
= Exp(4.9640 + 0.0000 × 1,133 + 2 × 0.0488)
= Exp(5.1151)
= $166.51

Bottom border of price channel:

Exp(Y781)
= Exp(a + b × X781 – 2 × s)
= Exp(a + b × 1,133 – 2 × s)
= Exp(4.9640 + 0.0000 × 1,133 – 2 × 0.0488)
= Exp(4.9198)
= $136.98

April 28, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(4.9640 + 0.0000 × 1,825 + 2 × 0.0488)
= Exp(5.1477)
= $172.04

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(4.9640 + 0.0000 × 1,825 – 2 × 0.0488)
= Exp(4.9525)
= $141.53

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 1.74% per annum.
  • PAG price at the close of April 28, 2025 was $157.86 and was inside the primary price channel.

Secondary Trend

Start date: October 12, 2023
End date: April 28, 2025

a = 4.7752

b = 0.0002

s = 0.0412

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 6.16%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0412) – 1
= 17.93%

October 12, 2023 calculations

Top border of price channel:

Exp(Y870)
= Exp(a + b × X870 + 2 × s)
= Exp(a + b × 1,261 + 2 × s)
= Exp(4.7752 + 0.0002 × 1,261 + 2 × 0.0412)
= Exp(5.0642)
= $158.25

Bottom border of price channel:

Exp(Y870)
= Exp(a + b × X870 – 2 × s)
= Exp(a + b × 1,261 – 2 × s)
= Exp(4.7752 + 0.0002 × 1,261 – 2 × 0.0412)
= Exp(4.8993)
= $134.19

April 28, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(4.7752 + 0.0002 × 1,825 + 2 × 0.0412)
= Exp(5.1566)
= $173.57

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(4.7752 + 0.0002 × 1,825 – 2 × 0.0412)
= Exp(4.9916)
= $147.18

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 6.16% per annum.
  • PAG price at the close of April 28, 2025 was inside the secondary price channel.