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 16.03% per annum.
- CTSH price at the close of April 29, 2025 was $73.29 and was lower than the bottom border of the primary price channel by $1.17 (1.57%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 74.20% per annum.
- CTSH price at the close of April 29, 2025 was higher than the top border of the secondary price channel by $2.38 (3.36%). This indicates a possible reversal in the secondary trend direction.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
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 13, 2022
End date: March 27, 2025
a = 3.6766
b = 0.0004
s = 0.0548
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.03%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0548) – 1
= 24.49%
September 13, 2022 calculations
Top border of price channel:
Exp(Y597)
= Exp(a + b × X597 + 2 × s)
= Exp(a + b × 866 + 2 × s)
= Exp(3.6766 + 0.0004 × 866 + 2 × 0.0548)
= Exp(4.1388)
= $62.73
Bottom border of price channel:
Exp(Y597)
= Exp(a + b × X597 – 2 × s)
= Exp(a + b × 866 – 2 × s)
= Exp(3.6766 + 0.0004 × 866 – 2 × 0.0548)
= Exp(3.9197)
= $50.39
March 27, 2025 calculations
Top border of price channel:
Exp(Y1,233)
= Exp(a + b × X1,233 + 2 × s)
= Exp(a + b × 1,792 + 2 × s)
= Exp(3.6766 + 0.0004 × 1,792 + 2 × 0.0548)
= Exp(4.5159)
= $91.46
Bottom border of price channel:
Exp(Y1,233)
= Exp(a + b × X1,233 – 2 × s)
= Exp(a + b × 1,792 – 2 × s)
= Exp(3.6766 + 0.0004 × 1,792 – 2 × 0.0548)
= Exp(4.2968)
= $73.47
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 16.03% per annum.
- CTSH price at the close of April 29, 2025 was $73.29 and was lower than the bottom border of the primary price channel by $1.17 (1.57%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: February 6, 2025
End date: April 23, 2025
a = 10.9783
b = -0.0037
s = 0.0282
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0037) – 1
= -74.20%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0282) – 1
= 11.94%
February 6, 2025 calculations
Top border of price channel:
Exp(Y1,199)
= Exp(a + b × X1,199 + 2 × s)
= Exp(a + b × 1,743 + 2 × s)
= Exp(10.9783 + -0.0037 × 1,743 + 2 × 0.0282)
= Exp(4.5657)
= $96.13
Bottom border of price channel:
Exp(Y1,199)
= Exp(a + b × X1,199 – 2 × s)
= Exp(a + b × 1,743 – 2 × s)
= Exp(10.9783 + -0.0037 × 1,743 – 2 × 0.0282)
= Exp(4.4529)
= $85.88
April 23, 2025 calculations
Top border of price channel:
Exp(Y1,251)
= Exp(a + b × X1,251 + 2 × s)
= Exp(a + b × 1,819 + 2 × s)
= Exp(10.9783 + -0.0037 × 1,819 + 2 × 0.0282)
= Exp(4.2837)
= $72.51
Bottom border of price channel:
Exp(Y1,251)
= Exp(a + b × X1,251 – 2 × s)
= Exp(a + b × 1,819 – 2 × s)
= Exp(10.9783 + -0.0037 × 1,819 – 2 × 0.0282)
= Exp(4.1709)
= $64.77
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 74.20% per annum.
- CTSH price at the close of April 29, 2025 was higher than the top border of the secondary price channel by $2.38 (3.36%). This indicates a possible reversal in the secondary trend direction.