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 137.81% per annum.
  • FTNT price at the close of March 31, 2025 was $96.26 and was lower than the bottom border of the primary price channel by $9.27 (8.79%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 70.97% per annum.
  • FTNT 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 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: May 3, 2024
End date: March 5, 2025

a = 0.4525

b = 0.0024

s = 0.0625

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0024) – 1
= 137.81%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0625) – 1
= 28.42%

May 3, 2024 calculations

Top border of price channel:

Exp(Y1,029)
= Exp(a + b × X1,029 + 2 × s)
= Exp(a + b × 1,493 + 2 × s)
= Exp(0.4525 + 0.0024 × 1,493 + 2 × 0.0625)
= Exp(4.1211)
= $61.63

Bottom border of price channel:

Exp(Y1,029)
= Exp(a + b × X1,029 – 2 × s)
= Exp(a + b × 1,493 – 2 × s)
= Exp(0.4525 + 0.0024 × 1,493 – 2 × 0.0625)
= Exp(3.8710)
= $47.99

March 5, 2025 calculations

Top border of price channel:

Exp(Y1,237)
= Exp(a + b × X1,237 + 2 × s)
= Exp(a + b × 1,799 + 2 × s)
= Exp(0.4525 + 0.0024 × 1,799 + 2 × 0.0625)
= Exp(4.8474)
= $127.41

Bottom border of price channel:

Exp(Y1,237)
= Exp(a + b × X1,237 – 2 × s)
= Exp(a + b × 1,799 – 2 × s)
= Exp(0.4525 + 0.0024 × 1,799 – 2 × 0.0625)
= Exp(4.5973)
= $99.22

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 137.81% per annum.
  • FTNT price at the close of March 31, 2025 was $96.26 and was lower than the bottom border of the primary price channel by $9.27 (8.79%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: February 10, 2025
End date: March 31, 2025

a = 10.7397

b = -0.0034

s = 0.0334

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0034) – 1
= -70.97%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0334) – 1
= 14.27%

February 10, 2025 calculations

Top border of price channel:

Exp(Y1,221)
= Exp(a + b × X1,221 + 2 × s)
= Exp(a + b × 1,776 + 2 × s)
= Exp(10.7397 + -0.0034 × 1,776 + 2 × 0.0334)
= Exp(4.7886)
= $120.14

Bottom border of price channel:

Exp(Y1,221)
= Exp(a + b × X1,221 – 2 × s)
= Exp(a + b × 1,776 – 2 × s)
= Exp(10.7397 + -0.0034 × 1,776 – 2 × 0.0334)
= Exp(4.6552)
= $105.13

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(10.7397 + -0.0034 × 1,825 + 2 × 0.0334)
= Exp(4.6226)
= $101.76

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(10.7397 + -0.0034 × 1,825 – 2 × 0.0334)
= Exp(4.4892)
= $89.05

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 70.97% per annum.
  • FTNT price at the close of March 31, 2025 was inside the secondary price channel.