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 16.06% per annum.
- CTSH price at the close of March 31, 2025 was $76.50 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 71.00% per annum.
- CTSH price at the close of March 31, 2025 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 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 14, 2022
End date: March 27, 2025
a = 3.6637
b = 0.0004
s = 0.0547
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 16.06%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0547) – 1
= 24.48%
September 14, 2022 calculations
Top border of price channel:
Exp(Y618)
= Exp(a + b × X618 + 2 × s)
= Exp(a + b × 896 + 2 × s)
= Exp(3.6637 + 0.0004 × 896 + 2 × 0.0547)
= Exp(4.1387)
= $62.72
Bottom border of price channel:
Exp(Y618)
= Exp(a + b × X618 – 2 × s)
= Exp(a + b × 896 – 2 × s)
= Exp(3.6637 + 0.0004 × 896 – 2 × 0.0547)
= Exp(3.9198)
= $50.39
March 27, 2025 calculations
Top border of price channel:
Exp(Y1,253)
= Exp(a + b × X1,253 + 2 × s)
= Exp(a + b × 1,821 + 2 × s)
= Exp(3.6637 + 0.0004 × 1,821 + 2 × 0.0547)
= Exp(4.5161)
= $91.47
Bottom border of price channel:
Exp(Y1,253)
= Exp(a + b × X1,253 – 2 × s)
= Exp(a + b × 1,821 – 2 × s)
= Exp(3.6637 + 0.0004 × 1,821 – 2 × 0.0547)
= Exp(4.2971)
= $73.49
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 16.06% per annum.
- CTSH price at the close of March 31, 2025 was $76.50 and was inside the primary price channel.
Secondary Trend
Start date: February 11, 2025
End date: March 31, 2025
a = 10.5198
b = -0.0034
s = 0.0153
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0034) – 1
= -71.00%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0153) – 1
= 6.33%
February 11, 2025 calculations
Top border of price channel:
Exp(Y1,222)
= Exp(a + b × X1,222 + 2 × s)
= Exp(a + b × 1,777 + 2 × s)
= Exp(10.5198 + -0.0034 × 1,777 + 2 × 0.0153)
= Exp(4.5232)
= $92.13
Bottom border of price channel:
Exp(Y1,222)
= Exp(a + b × X1,222 – 2 × s)
= Exp(a + b × 1,777 – 2 × s)
= Exp(10.5198 + -0.0034 × 1,777 – 2 × 0.0153)
= Exp(4.4619)
= $86.65
March 31, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(10.5198 + -0.0034 × 1,825 + 2 × 0.0153)
= Exp(4.3604)
= $78.29
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(10.5198 + -0.0034 × 1,825 – 2 × 0.0153)
= Exp(4.2990)
= $73.63
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 71.00% per annum.
- CTSH price at the close of March 31, 2025 was inside the secondary price channel.