Stock Price Trends

Telephone and Data Systems Inc (TDS)

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. The company is headquartered in Chicago, Illinois.

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 71.03% per annum.
  • TDS price at the close of May 8, 2024 was $15.30 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 21.08% per annum.
  • TDS price at the close of May 8, 2024 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 TDS 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: November 8, 2022
End date: May 8, 2024

a = 0.2500

b = 0.0015

s = 0.2580

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0015) – 1
= 71.03%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.2580) – 1
= 180.67%

November 8, 2022 calculations

Top border of price channel:

Exp(Y883)
= Exp(a + b × X883 + 2 × s)
= Exp(a + b × 1,279 + 2 × s)
= Exp(0.2500 + 0.0015 × 1,279 + 2 × 0.2580)
= Exp(2.6465)
= $14.10

Bottom border of price channel:

Exp(Y883)
= Exp(a + b × X883 – 2 × s)
= Exp(a + b × 1,279 – 2 × s)
= Exp(0.2500 + 0.0015 × 1,279 – 2 × 0.2580)
= Exp(1.6145)
= $5.03

May 8, 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(0.2500 + 0.0015 × 1,826 + 2 × 0.2580)
= Exp(3.4508)
= $31.53

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(0.2500 + 0.0015 × 1,826 – 2 × 0.2580)
= Exp(2.4188)
= $11.23

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 71.03% per annum.
  • TDS price at the close of May 8, 2024 was $15.30 and was inside the primary price channel.

Secondary Trend

Start date: August 14, 2023
End date: May 8, 2024

a = 3.9437

b = -0.0006

s = 0.0692

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -21.08%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0692) – 1
= 31.90%

August 14, 2023 calculations

Top border of price channel:

Exp(Y1,073)
= Exp(a + b × X1,073 + 2 × s)
= Exp(a + b × 1,558 + 2 × s)
= Exp(3.9437 + -0.0006 × 1,558 + 2 × 0.0692)
= Exp(3.0715)
= $21.57

Bottom border of price channel:

Exp(Y1,073)
= Exp(a + b × X1,073 – 2 × s)
= Exp(a + b × 1,558 – 2 × s)
= Exp(3.9437 + -0.0006 × 1,558 – 2 × 0.0692)
= Exp(2.7946)
= $16.36

May 8, 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(3.9437 + -0.0006 × 1,826 + 2 × 0.0692)
= Exp(2.8976)
= $18.13

Bottom border of price channel:

Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.9437 + -0.0006 × 1,826 – 2 × 0.0692)
= Exp(2.6207)
= $13.75

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 21.08% per annum.
  • TDS price at the close of May 8, 2024 was inside the secondary price channel.