Cummins Inc (CMI)
Cummins is a Columbus, Indiana based multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products. Cummins also services engines and related equipment, including fuel systems, controls, air handling, filtration, emission control, electrical power generation systems, and trucks.
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 49.50% per annum.
- CMI price at the close of November 19, 2024 was $361.86 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 89.33% per annum.
- CMI price at the close of November 19, 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 CMI 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 21, 2023
End date: November 19, 2024
a = 3.8175
b = 0.0011
s = 0.0478
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0011) – 1
= 49.50%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0478) – 1
= 21.06%
September 21, 2023 calculations
Top border of price channel:
Exp(Y964)
= Exp(a + b × X964 + 2 × s)
= Exp(a + b × 1,401 + 2 × s)
= Exp(3.8175 + 0.0011 × 1,401 + 2 × 0.0478)
= Exp(5.4566)
= $234.29
Bottom border of price channel:
Exp(Y964)
= Exp(a + b × X964 – 2 × s)
= Exp(a + b × 1,401 – 2 × s)
= Exp(3.8175 + 0.0011 × 1,401 – 2 × 0.0478)
= Exp(5.2654)
= $193.53
November 19, 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(3.8175 + 0.0011 × 1,826 + 2 × 0.0478)
= Exp(5.9248)
= $374.21
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.8175 + 0.0011 × 1,826 – 2 × 0.0478)
= Exp(5.7337)
= $309.11
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 49.50% per annum.
- CMI price at the close of November 19, 2024 was $361.86 and was inside the primary price channel.
Secondary Trend
Start date: June 7, 2024
End date: November 19, 2024
a = 2.6697
b = 0.0017
s = 0.0267
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0017) – 1
= 89.33%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0267) – 1
= 11.25%
June 7, 2024 calculations
Top border of price channel:
Exp(Y1,143)
= Exp(a + b × X1,143 + 2 × s)
= Exp(a + b × 1,661 + 2 × s)
= Exp(2.6697 + 0.0017 × 1,661 + 2 × 0.0267)
= Exp(5.6279)
= $278.08
Bottom border of price channel:
Exp(Y1,143)
= Exp(a + b × X1,143 – 2 × s)
= Exp(a + b × 1,661 – 2 × s)
= Exp(2.6697 + 0.0017 × 1,661 – 2 × 0.0267)
= Exp(5.5213)
= $249.96
November 19, 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(2.6697 + 0.0017 × 1,826 + 2 × 0.0267)
= Exp(5.9165)
= $371.11
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(2.6697 + 0.0017 × 1,826 – 2 × 0.0267)
= Exp(5.8098)
= $333.57
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 89.33% per annum.
- CMI price at the close of November 19, 2024 was inside the secondary price channel.