Stock Price Trends

Urban Outfitters Inc (URBN)

Urban Outfitters, Inc. is engaged in the retail and wholesale of general consumer products. The company is headquartered in Philadelphia, Pennsylvania.

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 47.04% per annum.
  • URBN price at the close of July 26, 2024 was $46.58 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 34.91% per annum.
  • URBN price at the close of July 26, 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 URBN 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: May 18, 2022
End date: July 26, 2024

a = 1.9134

b = 0.0011

s = 0.0649

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 47.04%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0649) – 1
= 29.64%

May 18, 2022 calculations

Top border of price channel:

Exp(Y708)
= Exp(a + b × X708 + 2 × s)
= Exp(a + b × 1,024 + 2 × s)
= Exp(1.9134 + 0.0011 × 1,024 + 2 × 0.0649)
= Exp(3.1248)
= $22.76

Bottom border of price channel:

Exp(Y708)
= Exp(a + b × X708 – 2 × s)
= Exp(a + b × 1,024 – 2 × s)
= Exp(1.9134 + 0.0011 × 1,024 – 2 × 0.0649)
= Exp(2.8652)
= $17.55

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(1.9134 + 0.0011 × 1,824 + 2 × 0.0649)
= Exp(3.9698)
= $52.97

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(1.9134 + 0.0011 × 1,824 – 2 × 0.0649)
= Exp(3.7102)
= $40.86

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 47.04% per annum.
  • URBN price at the close of July 26, 2024 was $46.58 and was inside the primary price channel.

Secondary Trend

Start date: May 24, 2023
End date: July 26, 2024

a = 2.3028

b = 0.0008

s = 0.0559

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 34.91%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0559) – 1
= 25.03%

May 24, 2023 calculations

Top border of price channel:

Exp(Y963)
= Exp(a + b × X963 + 2 × s)
= Exp(a + b × 1,395 + 2 × s)
= Exp(2.3028 + 0.0008 × 1,395 + 2 × 0.0559)
= Exp(3.5590)
= $35.13

Bottom border of price channel:

Exp(Y963)
= Exp(a + b × X963 – 2 × s)
= Exp(a + b × 1,395 – 2 × s)
= Exp(2.3028 + 0.0008 × 1,395 – 2 × 0.0559)
= Exp(3.3356)
= $28.10

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(2.3028 + 0.0008 × 1,824 + 2 × 0.0559)
= Exp(3.9110)
= $49.95

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(2.3028 + 0.0008 × 1,824 – 2 × 0.0559)
= Exp(3.6876)
= $39.95

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 34.91% per annum.
  • URBN price at the close of July 26, 2024 was inside the secondary price channel.