Cognizant Technology Solutions Corp Class A (CTSH)
Cognizant is an American multinational technology company that provides business consulting, information technology and outsourcing services. It is headquartered in Teaneck, New Jersey, United States.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is decreasing.
- The decline rate of the primary trend is 65.12% per annum.
- CTSH price at the close of May 8, 2024 was $67.72 and was higher than the top border of the primary price channel by $1.83 (2.78%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 27.78% per annum.
- CTSH price at the close of May 8, 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 CTSH 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: February 22, 2024
End date: May 3, 2024
a = 9.4367
b = -0.0029
s = 0.0102
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0029) – 1
= -65.12%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0102) – 1
= 4.17%
February 22, 2024 calculations
Top border of price channel:
Exp(Y1,205)
= Exp(a + b × X1,205 + 2 × s)
= Exp(a + b × 1,750 + 2 × s)
= Exp(9.4367 + -0.0029 × 1,750 + 2 × 0.0102)
= Exp(4.4073)
= $82.05
Bottom border of price channel:
Exp(Y1,205)
= Exp(a + b × X1,205 – 2 × s)
= Exp(a + b × 1,750 – 2 × s)
= Exp(9.4367 + -0.0029 × 1,750 – 2 × 0.0102)
= Exp(4.3664)
= $78.76
May 3, 2024 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,821 + 2 × s)
= Exp(9.4367 + -0.0029 × 1,821 + 2 × 0.0102)
= Exp(4.2024)
= $66.85
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,821 – 2 × s)
= Exp(9.4367 + -0.0029 × 1,821 – 2 × 0.0102)
= Exp(4.1615)
= $64.17
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 65.12% per annum.
- CTSH price at the close of May 8, 2024 was $67.72 and was higher than the top border of the primary price channel by $1.83 (2.78%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: April 15, 2024
End date: May 8, 2024
a = 5.8235
b = -0.0009
s = 0.0114
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0009) – 1
= -27.78%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0114) – 1
= 4.65%
April 15, 2024 calculations
Top border of price channel:
Exp(Y1,241)
= Exp(a + b × X1,241 + 2 × s)
= Exp(a + b × 1,803 + 2 × s)
= Exp(5.8235 + -0.0009 × 1,803 + 2 × 0.0114)
= Exp(4.2386)
= $69.31
Bottom border of price channel:
Exp(Y1,241)
= Exp(a + b × X1,241 – 2 × s)
= Exp(a + b × 1,803 – 2 × s)
= Exp(5.8235 + -0.0009 × 1,803 – 2 × 0.0114)
= Exp(4.1931)
= $66.23
May 8, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(5.8235 + -0.0009 × 1,826 + 2 × 0.0114)
= Exp(4.2181)
= $67.90
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.8235 + -0.0009 × 1,826 – 2 × 0.0114)
= Exp(4.1726)
= $64.88
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 27.78% per annum.
- CTSH price at the close of May 8, 2024 was inside the secondary price channel.