World Acceptance Corporation (WRLD)
World Acceptance Corporation is engaged in the small loan consumer finance business. The company is headquartered in Greenville, South Carolina.
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 157.83% per annum.
- WRLD price at the close of July 26, 2024 was $120.16 and was lower than the bottom border of the primary price channel by $147.32 (55.08%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 2.81% per annum.
- WRLD 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 WRLD 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 27, 2022
End date: September 19, 2023
a = 1.0877
b = 0.0026
s = 0.1159
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0026) – 1
= 157.83%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1159) – 1
= 58.95%
October 27, 2022 calculations
Top border of price channel:
Exp(Y820)
= Exp(a + b × X820 + 2 × s)
= Exp(a + b × 1,186 + 2 × s)
= Exp(1.0877 + 0.0026 × 1,186 + 2 × 0.1159)
= Exp(4.3969)
= $81.20
Bottom border of price channel:
Exp(Y820)
= Exp(a + b × X820 – 2 × s)
= Exp(a + b × 1,186 – 2 × s)
= Exp(1.0877 + 0.0026 × 1,186 – 2 × 0.1159)
= Exp(3.9335)
= $51.09
September 19, 2023 calculations
Top border of price channel:
Exp(Y1,043)
= Exp(a + b × X1,043 + 2 × s)
= Exp(a + b × 1,513 + 2 × s)
= Exp(1.0877 + 0.0026 × 1,513 + 2 × 0.1159)
= Exp(5.2455)
= $189.70
Bottom border of price channel:
Exp(Y1,043)
= Exp(a + b × X1,043 – 2 × s)
= Exp(a + b × 1,513 – 2 × s)
= Exp(1.0877 + 0.0026 × 1,513 – 2 × 0.1159)
= Exp(4.7820)
= $119.35
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 157.83% per annum.
- WRLD price at the close of July 26, 2024 was $120.16 and was lower than the bottom border of the primary price channel by $147.32 (55.08%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: May 18, 2023
End date: July 26, 2024
a = 4.7344
b = 0.0001
s = 0.0934
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 2.81%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0934) – 1
= 45.31%
May 18, 2023 calculations
Top border of price channel:
Exp(Y959)
= Exp(a + b × X959 + 2 × s)
= Exp(a + b × 1,389 + 2 × s)
= Exp(4.7344 + 0.0001 × 1,389 + 2 × 0.0934)
= Exp(5.0267)
= $152.42
Bottom border of price channel:
Exp(Y959)
= Exp(a + b × X959 – 2 × s)
= Exp(a + b × 1,389 – 2 × s)
= Exp(4.7344 + 0.0001 × 1,389 – 2 × 0.0934)
= Exp(4.6530)
= $104.90
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(4.7344 + 0.0001 × 1,824 + 2 × 0.0934)
= Exp(5.0597)
= $157.54
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.7344 + 0.0001 × 1,824 – 2 × 0.0934)
= Exp(4.6860)
= $108.42
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 2.81% per annum.
- WRLD price at the close of July 26, 2024 was inside the secondary price channel.