Stock Price Trends

RH, headquartered in Corte Madera, California, is a luxury home furnishings retailer known for its high-end designs and curated collections. The company differentiates itself through its unique approach to the retail experience, blending physical showrooms with a strong online presence to engage consumers effectively. RH's commitment to innovation and quality positions it as a leader in the home décor market, catering to affluent clientele seeking sophisticated and upscale products. With a focus on expanding its brand through new store openings and unique offerings, RH is strategically poised for continued growth in the evolving retail landscape.

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 4.87% per annum.
  • RH price at the close of February 13, 2026 was $205.06 and was lower than the bottom border of the primary price channel by $32.84 (13.80%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 51.10% per annum.
  • RH price at the close of February 13, 2026 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: March 7, 2022
End date: March 7, 2025

a = 5.5488

b = 0.0001

s = 0.1573

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 4.87%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1573) – 1
= 87.64%

March 7, 2022 calculations

Top border of price channel:

Exp(Y266)
= Exp(a + b × X266 + 2 × s)
= Exp(a + b × 384 + 2 × s)
= Exp(5.5488 + 0.0001 × 384 + 2 × 0.1573)
= Exp(5.9135)
= $370.00

Bottom border of price channel:

Exp(Y266)
= Exp(a + b × X266 – 2 × s)
= Exp(a + b × 384 – 2 × s)
= Exp(5.5488 + 0.0001 × 384 – 2 × 0.1573)
= Exp(5.2842)
= $197.19

March 7, 2025 calculations

Top border of price channel:

Exp(Y1,019)
= Exp(a + b × X1,019 + 2 × s)
= Exp(a + b × 1,480 + 2 × s)
= Exp(5.5488 + 0.0001 × 1,480 + 2 × 0.1573)
= Exp(6.0564)
= $426.85

Bottom border of price channel:

Exp(Y1,019)
= Exp(a + b × X1,019 – 2 × s)
= Exp(a + b × 1,480 – 2 × s)
= Exp(5.5488 + 0.0001 × 1,480 – 2 × 0.1573)
= Exp(5.4271)
= $227.49

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 4.87% per annum.
  • RH price at the close of February 13, 2026 was $205.06 and was lower than the bottom border of the primary price channel by $32.84 (13.80%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: September 13, 2024
End date: December 31, 2025

a = 8.5181

b = -0.0020

s = 0.1950

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0020) – 1
= -51.10%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1950) – 1
= 118.15%

September 13, 2024 calculations

Top border of price channel:

Exp(Y900)
= Exp(a + b × X900 + 2 × s)
= Exp(a + b × 1,305 + 2 × s)
= Exp(8.5181 + -0.0020 × 1,305 + 2 × 0.1950)
= Exp(6.3504)
= $572.73

Bottom border of price channel:

Exp(Y900)
= Exp(a + b × X900 – 2 × s)
= Exp(a + b × 1,305 – 2 × s)
= Exp(8.5181 + -0.0020 × 1,305 – 2 × 0.1950)
= Exp(5.5704)
= $262.54

December 31, 2025 calculations

Top border of price channel:

Exp(Y1,225)
= Exp(a + b × X1,225 + 2 × s)
= Exp(a + b × 1,779 + 2 × s)
= Exp(8.5181 + -0.0020 × 1,779 + 2 × 0.1950)
= Exp(5.4214)
= $226.20

Bottom border of price channel:

Exp(Y1,225)
= Exp(a + b × X1,225 – 2 × s)
= Exp(a + b × 1,779 – 2 × s)
= Exp(8.5181 + -0.0020 × 1,779 – 2 × 0.1950)
= Exp(4.6414)
= $103.69

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 51.10% per annum.
  • RH price at the close of February 13, 2026 was inside the secondary price channel.

See Also

Symbol

Company name

WSM
Williams-Sonoma Inc