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 increasing.
- The growth rate of the primary trend is 16.36% per annum.
- CTSH price at the close of March 13, 2025 was $78.34 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 33.53% per annum.
- CTSH price at the close of March 13, 2025 was lower than the bottom border of the secondary price channel by $1.33 (1.67%). 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 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: September 20, 2022
End date: March 13, 2025
a = 3.6476
b = 0.0004
s = 0.0548
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.36%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0548) – 1
= 24.51%
September 20, 2022 calculations
Top border of price channel:
Exp(Y634)
= Exp(a + b × X634 + 2 × s)
= Exp(a + b × 918 + 2 × s)
= Exp(3.6476 + 0.0004 × 918 + 2 × 0.0548)
= Exp(4.1383)
= $62.70
Bottom border of price channel:
Exp(Y634)
= Exp(a + b × X634 – 2 × s)
= Exp(a + b × 918 – 2 × s)
= Exp(3.6476 + 0.0004 × 918 – 2 × 0.0548)
= Exp(3.9191)
= $50.36
March 13, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(3.6476 + 0.0004 × 1,823 + 2 × 0.0548)
= Exp(4.5140)
= $91.29
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(3.6476 + 0.0004 × 1,823 – 2 × 0.0548)
= Exp(4.2948)
= $73.32
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 16.36% per annum.
- CTSH price at the close of March 13, 2025 was $78.34 and was inside the primary price channel.
Secondary Trend
Start date: April 15, 2024
End date: March 13, 2025
a = 3.0013
b = 0.0008
s = 0.0338
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 33.53%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0338) – 1
= 14.47%
April 15, 2024 calculations
Top border of price channel:
Exp(Y1,027)
= Exp(a + b × X1,027 + 2 × s)
= Exp(a + b × 1,491 + 2 × s)
= Exp(3.0013 + 0.0008 × 1,491 + 2 × 0.0338)
= Exp(4.2501)
= $70.11
Bottom border of price channel:
Exp(Y1,027)
= Exp(a + b × X1,027 – 2 × s)
= Exp(a + b × 1,491 – 2 × s)
= Exp(3.0013 + 0.0008 × 1,491 – 2 × 0.0338)
= Exp(4.1149)
= $61.25
March 13, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(3.0013 + 0.0008 × 1,823 + 2 × 0.0338)
= Exp(4.5131)
= $91.20
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(3.0013 + 0.0008 × 1,823 – 2 × 0.0338)
= Exp(4.3779)
= $79.67
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 33.53% per annum.
- CTSH price at the close of March 13, 2025 was lower than the bottom border of the secondary price channel by $1.33 (1.67%). This indicates a possible reversal in the secondary trend direction.