RH (RH)
RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.
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 98.79% per annum.
- RH price at the close of April 28, 2025 was $183.53 and was higher than the top border of the primary price channel by $1.71 (0.94%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 890.78% per annum.
- RH price at the close of April 28, 2025 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 RH 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: January 15, 2025
End date: April 23, 2025
a = 27.0486
b = -0.0121
s = 0.1085
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0121) – 1
= -98.79%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1085) – 1
= 54.33%
January 15, 2025 calculations
Top border of price channel:
Exp(Y1,185)
= Exp(a + b × X1,185 + 2 × s)
= Exp(a + b × 1,722 + 2 × s)
= Exp(27.0486 + -0.0121 × 1,722 + 2 × 0.1085)
= Exp(6.4482)
= $631.56
Bottom border of price channel:
Exp(Y1,185)
= Exp(a + b × X1,185 – 2 × s)
= Exp(a + b × 1,722 – 2 × s)
= Exp(27.0486 + -0.0121 × 1,722 – 2 × 0.1085)
= Exp(6.0142)
= $409.22
April 23, 2025 calculations
Top border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,820 + 2 × s)
= Exp(27.0486 + -0.0121 × 1,820 + 2 × 0.1085)
= Exp(5.2635)
= $193.15
Bottom border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,820 – 2 × s)
= Exp(27.0486 + -0.0121 × 1,820 – 2 × 0.1085)
= Exp(4.8295)
= $125.15
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 98.79% per annum.
- RH price at the close of April 28, 2025 was $183.53 and was higher than the top border of the primary price channel by $1.71 (0.94%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: April 3, 2025
End date: April 28, 2025
a = -6.2733
b = 0.0063
s = 0.0703
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0063) – 1
= 890.78%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0703) – 1
= 32.46%
April 3, 2025 calculations
Top border of price channel:
Exp(Y1,239)
= Exp(a + b × X1,239 + 2 × s)
= Exp(a + b × 1,800 + 2 × s)
= Exp(-6.2733 + 0.0063 × 1,800 + 2 × 0.0703)
= Exp(5.1768)
= $177.11
Bottom border of price channel:
Exp(Y1,239)
= Exp(a + b × X1,239 – 2 × s)
= Exp(a + b × 1,800 – 2 × s)
= Exp(-6.2733 + 0.0063 × 1,800 – 2 × 0.0703)
= Exp(4.8956)
= $133.71
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(-6.2733 + 0.0063 × 1,825 + 2 × 0.0703)
= Exp(5.3338)
= $207.23
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(-6.2733 + 0.0063 × 1,825 – 2 × 0.0703)
= Exp(5.0527)
= $156.45
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 890.78% per annum.
- RH price at the close of April 28, 2025 was inside the secondary price channel.