Stock Price Trends

CMS Energy Corporation (CMS)

CMS Energy (NYSE: CMS), based in Jackson, Michigan, is an energy company that is focused principally on utility operations in Michigan.

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 25.37% per annum.
  • CMS price at the close of July 26, 2024 was $62.96 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 14.96% per annum.
  • CMS 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 CMS 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 25, 2023
End date: June 11, 2024

a = 3.0232

b = 0.0006

s = 0.0249

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 25.37%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0249) – 1
= 10.49%

September 25, 2023 calculations

Top border of price channel:

Exp(Y1,047)
= Exp(a + b × X1,047 + 2 × s)
= Exp(a + b × 1,519 + 2 × s)
= Exp(3.0232 + 0.0006 × 1,519 + 2 × 0.0249)
= Exp(4.0139)
= $55.36

Bottom border of price channel:

Exp(Y1,047)
= Exp(a + b × X1,047 – 2 × s)
= Exp(a + b × 1,519 – 2 × s)
= Exp(3.0232 + 0.0006 × 1,519 – 2 × 0.0249)
= Exp(3.9141)
= $50.10

June 11, 2024 calculations

Top border of price channel:

Exp(Y1,226)
= Exp(a + b × X1,226 + 2 × s)
= Exp(a + b × 1,779 + 2 × s)
= Exp(3.0232 + 0.0006 × 1,779 + 2 × 0.0249)
= Exp(4.1749)
= $65.03

Bottom border of price channel:

Exp(Y1,226)
= Exp(a + b × X1,226 – 2 × s)
= Exp(a + b × 1,779 – 2 × s)
= Exp(3.0232 + 0.0006 × 1,779 – 2 × 0.0249)
= Exp(4.0751)
= $58.86

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 25.37% per annum.
  • CMS price at the close of July 26, 2024 was $62.96 and was inside the primary price channel.

Secondary Trend

Start date: November 14, 2023
End date: July 24, 2024

a = 3.4215

b = 0.0004

s = 0.0235

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 14.96%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0235) – 1
= 9.86%

November 14, 2023 calculations

Top border of price channel:

Exp(Y1,083)
= Exp(a + b × X1,083 + 2 × s)
= Exp(a + b × 1,569 + 2 × s)
= Exp(3.4215 + 0.0004 × 1,569 + 2 × 0.0235)
= Exp(4.0679)
= $58.43

Bottom border of price channel:

Exp(Y1,083)
= Exp(a + b × X1,083 – 2 × s)
= Exp(a + b × 1,569 – 2 × s)
= Exp(3.4215 + 0.0004 × 1,569 – 2 × 0.0235)
= Exp(3.9738)
= $53.19

July 24, 2024 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,822 + 2 × s)
= Exp(3.4215 + 0.0004 × 1,822 + 2 × 0.0235)
= Exp(4.1645)
= $64.36

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,822 – 2 × s)
= Exp(3.4215 + 0.0004 × 1,822 – 2 × 0.0235)
= Exp(4.0705)
= $58.59

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 14.96% per annum.
  • CMS price at the close of July 26, 2024 was inside the secondary price channel.