Stock Price Trends

Fortinet Inc (FTNT)

Fortinet (Nasdaq: FTNT) is an American multinational corporation headquartered in Sunnyvale, California. It develops and sells cybersecurity solutions, including but not limited to physical products such as firewalls, plus software and services such as anti-virus protection, intrusion prevention systems and endpoint security components.

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 1.47% per annum.
  • FTNT price at the close of July 25, 2024 was $57.31 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 37.93% per annum.
  • FTNT price at the close of July 25, 2024 was inside the secondary price channel.
  • 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 FTNT 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: July 9, 2021
End date: July 25, 2024

a = 4.0468

b = 0.0000

s = 0.1117

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0000) – 1
= 1.47%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1117) – 1
= 56.30%

July 9, 2021 calculations

Top border of price channel:

Exp(Y492)
= Exp(a + b × X492 + 2 × s)
= Exp(a + b × 714 + 2 × s)
= Exp(4.0468 + 0.0000 × 714 + 2 × 0.1117)
= Exp(4.2986)
= $73.60

Bottom border of price channel:

Exp(Y492)
= Exp(a + b × X492 – 2 × s)
= Exp(a + b × 714 – 2 × s)
= Exp(4.0468 + 0.0000 × 714 – 2 × 0.1117)
= Exp(3.8520)
= $47.09

July 25, 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(4.0468 + 0.0000 × 1,826 + 2 × 0.1117)
= Exp(4.3429)
= $76.93

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.0468 + 0.0000 × 1,826 – 2 × 0.1117)
= Exp(3.8963)
= $49.22

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 1.47% per annum.
  • FTNT price at the close of July 25, 2024 was $57.31 and was inside the primary price channel.

Secondary Trend

Start date: February 7, 2024
End date: July 25, 2024

a = 6.4298

b = -0.0013

s = 0.0318

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0013) – 1
= -37.93%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0318) – 1
= 13.55%

February 7, 2024 calculations

Top border of price channel:

Exp(Y1,141)
= Exp(a + b × X1,141 + 2 × s)
= Exp(a + b × 1,657 + 2 × s)
= Exp(6.4298 + -0.0013 × 1,657 + 2 × 0.0318)
= Exp(4.3280)
= $75.79

Bottom border of price channel:

Exp(Y1,141)
= Exp(a + b × X1,141 – 2 × s)
= Exp(a + b × 1,657 – 2 × s)
= Exp(6.4298 + -0.0013 × 1,657 – 2 × 0.0318)
= Exp(4.2009)
= $66.75

July 25, 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(6.4298 + -0.0013 × 1,826 + 2 × 0.0318)
= Exp(4.1071)
= $60.77

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(6.4298 + -0.0013 × 1,826 – 2 × 0.0318)
= Exp(3.9801)
= $53.52

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 37.93% per annum.
  • FTNT price at the close of July 25, 2024 was inside the secondary price channel.