Stock Price Trends

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 23.24% per annum.
  • CTSH price at the close of December 11, 2024 was $81.25 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 15.86% per annum.
  • CTSH price at the close of December 11, 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: September 20, 2022
End date: March 28, 2024

a = 3.4221

b = 0.0006

s = 0.0477

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 23.24%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0477) – 1
= 21.02%

September 20, 2022 calculations

Top border of price channel:

Exp(Y697)
= Exp(a + b × X697 + 2 × s)
= Exp(a + b × 1,013 + 2 × s)
= Exp(3.4221 + 0.0006 × 1,013 + 2 × 0.0477)
= Exp(4.0975)
= $60.19

Bottom border of price channel:

Exp(Y697)
= Exp(a + b × X697 – 2 × s)
= Exp(a + b × 1,013 – 2 × s)
= Exp(3.4221 + 0.0006 × 1,013 – 2 × 0.0477)
= Exp(3.9067)
= $49.74

March 28, 2024 calculations

Top border of price channel:

Exp(Y1,079)
= Exp(a + b × X1,079 + 2 × s)
= Exp(a + b × 1,568 + 2 × s)
= Exp(3.4221 + 0.0006 × 1,568 + 2 × 0.0477)
= Exp(4.4153)
= $82.71

Bottom border of price channel:

Exp(Y1,079)
= Exp(a + b × X1,079 – 2 × s)
= Exp(a + b × 1,568 – 2 × s)
= Exp(3.4221 + 0.0006 × 1,568 – 2 × 0.0477)
= Exp(4.2245)
= $68.34

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 23.24% per annum.
  • CTSH price at the close of December 11, 2024 was $81.25 and was inside the primary price channel.

Secondary Trend

Start date: September 20, 2022
End date: December 11, 2024

a = 3.6272

b = 0.0004

s = 0.0558

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 15.86%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0558) – 1
= 24.99%

September 20, 2022 calculations

Top border of price channel:

Exp(Y697)
= Exp(a + b × X697 + 2 × s)
= Exp(a + b × 1,013 + 2 × s)
= Exp(3.6272 + 0.0004 × 1,013 + 2 × 0.0558)
= Exp(4.1472)
= $63.26

Bottom border of price channel:

Exp(Y697)
= Exp(a + b × X697 – 2 × s)
= Exp(a + b × 1,013 – 2 × s)
= Exp(3.6272 + 0.0004 × 1,013 – 2 × 0.0558)
= Exp(3.9242)
= $50.61

December 11, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.6272 + 0.0004 × 1,826 + 2 × 0.0558)
= Exp(4.4751)
= $87.80

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.6272 + 0.0004 × 1,826 – 2 × 0.0558)
= Exp(4.2520)
= $70.25

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 15.86% per annum.
  • CTSH price at the close of December 11, 2024 was inside the secondary price channel.