Arista Networks (ANET)
Arista Networks (formerly Arastra) is an American computer networking company headquartered in Santa Clara, California. The company designs and sells multilayer network switches to deliver software-defined networking (SDN) solutions for large datacenter, cloud computing, high-performance computing, and high-frequency trading environments.
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 84.92% per annum.
- ANET price at the close of April 26, 2024 was $264.70 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 119.87% per annum.
- ANET price at the close of April 26, 2024 was lower than the bottom border of the secondary price channel by $11.51 (4.17%). This indicates a possible reversal in the secondary trend direction.
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 ANET 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: September 16, 2022
End date: April 18, 2024
a = 2.5816
b = 0.0017
s = 0.0761
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0017) – 1
= 84.92%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0761) – 1
= 35.56%
September 16, 2022 calculations
Top border of price channel:
Exp(Y854)
= Exp(a + b × X854 + 2 × s)
= Exp(a + b × 1,236 + 2 × s)
= Exp(2.5816 + 0.0017 × 1,236 + 2 × 0.0761)
= Exp(4.8154)
= $123.40
Bottom border of price channel:
Exp(Y854)
= Exp(a + b × X854 – 2 × s)
= Exp(a + b × 1,236 – 2 × s)
= Exp(2.5816 + 0.0017 × 1,236 – 2 × 0.0761)
= Exp(4.5112)
= $91.03
April 18, 2024 calculations
Top border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,816 + 2 × s)
= Exp(2.5816 + 0.0017 × 1,816 + 2 × 0.0761)
= Exp(5.7923)
= $327.77
Bottom border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,816 – 2 × s)
= Exp(2.5816 + 0.0017 × 1,816 – 2 × 0.0761)
= Exp(5.4881)
= $241.80
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 84.92% per annum.
- ANET price at the close of April 26, 2024 was $264.70 and was inside the primary price channel.
Secondary Trend
Start date: May 2, 2023
End date: April 18, 2024
a = 1.7867
b = 0.0022
s = 0.0514
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0022) – 1
= 119.87%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0514) – 1
= 22.81%
May 2, 2023 calculations
Top border of price channel:
Exp(Y1,010)
= Exp(a + b × X1,010 + 2 × s)
= Exp(a + b × 1,464 + 2 × s)
= Exp(1.7867 + 0.0022 × 1,464 + 2 × 0.0514)
= Exp(5.0496)
= $155.96
Bottom border of price channel:
Exp(Y1,010)
= Exp(a + b × X1,010 – 2 × s)
= Exp(a + b × 1,464 – 2 × s)
= Exp(1.7867 + 0.0022 × 1,464 – 2 × 0.0514)
= Exp(4.8441)
= $126.99
April 18, 2024 calculations
Top border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 + 2 × s)
= Exp(a + b × 1,816 + 2 × s)
= Exp(1.7867 + 0.0022 × 1,816 + 2 × 0.0514)
= Exp(5.8094)
= $333.42
Bottom border of price channel:
Exp(Y1,252)
= Exp(a + b × X1,252 – 2 × s)
= Exp(a + b × 1,816 – 2 × s)
= Exp(1.7867 + 0.0022 × 1,816 – 2 × 0.0514)
= Exp(5.6039)
= $271.48
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 119.87% per annum.
- ANET price at the close of April 26, 2024 was lower than the bottom border of the secondary price channel by $11.51 (4.17%). This indicates a possible reversal in the secondary trend direction.