Stock Price Trends

World Kinect Corporation (WKC)

World Kinect Corporation engages in the distribution of fuel and related products and services in the aviation, marine and land transportation industries globally.

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 90.26% per annum.
  • WKC price at the close of May 8, 2024 was $24.60 and was lower than the bottom border of the primary price channel by $1.19 (4.60%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 64.68% per annum.
  • WKC price at the close of May 8, 2024 was higher than the top border of the secondary price channel by $0.10 (0.42%). This indicates a possible reversal in the secondary trend direction.
  • 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 WKC 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: October 18, 2023
End date: April 12, 2024

a = 0.0956

b = 0.0018

s = 0.0317

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 90.26%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0317) – 1
= 13.54%

October 18, 2023 calculations

Top border of price channel:

Exp(Y1,119)
= Exp(a + b × X1,119 + 2 × s)
= Exp(a + b × 1,623 + 2 × s)
= Exp(0.0956 + 0.0018 × 1,623 + 2 × 0.0317)
= Exp(3.0191)
= $20.47

Bottom border of price channel:

Exp(Y1,119)
= Exp(a + b × X1,119 – 2 × s)
= Exp(a + b × 1,623 – 2 × s)
= Exp(0.0956 + 0.0018 × 1,623 – 2 × 0.0317)
= Exp(2.8921)
= $18.03

April 12, 2024 calculations

Top border of price channel:

Exp(Y1,240)
= Exp(a + b × X1,240 + 2 × s)
= Exp(a + b × 1,800 + 2 × s)
= Exp(0.0956 + 0.0018 × 1,800 + 2 × 0.0317)
= Exp(3.3310)
= $27.97

Bottom border of price channel:

Exp(Y1,240)
= Exp(a + b × X1,240 – 2 × s)
= Exp(a + b × 1,800 – 2 × s)
= Exp(0.0956 + 0.0018 × 1,800 – 2 × 0.0317)
= Exp(3.2040)
= $24.63

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 90.26% per annum.
  • WKC price at the close of May 8, 2024 was $24.60 and was lower than the bottom border of the primary price channel by $1.19 (4.60%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: March 21, 2024
End date: May 6, 2024

a = 8.3614

b = -0.0029

s = 0.0218

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0029) – 1
= -64.68%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0218) – 1
= 9.13%

March 21, 2024 calculations

Top border of price channel:

Exp(Y1,225)
= Exp(a + b × X1,225 + 2 × s)
= Exp(a + b × 1,778 + 2 × s)
= Exp(8.3614 + -0.0029 × 1,778 + 2 × 0.0218)
= Exp(3.3354)
= $28.09

Bottom border of price channel:

Exp(Y1,225)
= Exp(a + b × X1,225 – 2 × s)
= Exp(a + b × 1,778 – 2 × s)
= Exp(8.3614 + -0.0029 × 1,778 – 2 × 0.0218)
= Exp(3.2481)
= $25.74

May 6, 2024 calculations

Top border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(8.3614 + -0.0029 × 1,824 + 2 × 0.0218)
= Exp(3.2043)
= $24.64

Bottom border of price channel:

Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(8.3614 + -0.0029 × 1,824 – 2 × 0.0218)
= Exp(3.1169)
= $22.58

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 64.68% per annum.
  • WKC price at the close of May 8, 2024 was higher than the top border of the secondary price channel by $0.10 (0.42%). This indicates a possible reversal in the secondary trend direction.