Cognex (NASDAQ:CGNX) Shares Gap Up on Earnings Beat

Cognex Co. (NASDAQ:CGNX) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $40.46, but opened at $43.39. Cognex shares last traded at $42.89, with a volume of 426,279 shares changing hands.

The scientific and technical instruments company reported $0.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.03. Cognex had a return on equity of 4.97% and a net margin of 9.29%. The business had revenue of $234.74 million for the quarter, compared to analyst estimates of $229.86 million.

Cognex Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Thursday, November 14th will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.80%. This is an increase from Cognex’s previous quarterly dividend of $0.08. Cognex’s dividend payout ratio (DPR) is presently 51.72%.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. The Goldman Sachs Group reduced their price objective on shares of Cognex from $45.00 to $39.00 and set a “sell” rating on the stock in a research note on Friday, August 2nd. Vertical Research started coverage on Cognex in a research note on Tuesday, July 23rd. They issued a “buy” rating and a $58.00 price target for the company. StockNews.com raised Cognex from a “sell” rating to a “hold” rating in a report on Friday, August 9th. Stephens upgraded Cognex from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $45.00 to $55.00 in a research report on Wednesday, October 16th. Finally, Truist Financial dropped their price target on Cognex from $55.00 to $46.00 and set a “buy” rating on the stock in a research report on Friday, August 2nd. One analyst has rated the stock with a sell rating, four have assigned a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $50.00.

Insiders Place Their Bets

In other news, Director Dianne M. Parrotte purchased 2,000 shares of the stock in a transaction dated Wednesday, August 7th. The stock was acquired at an average price of $38.62 per share, for a total transaction of $77,240.00. Following the completion of the transaction, the director now owns 11,340 shares of the company’s stock, valued at approximately $437,950.80. The trade was a 0.00 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other Cognex news, Director Dianne M. Parrotte purchased 2,000 shares of the business’s stock in a transaction dated Wednesday, August 7th. The shares were bought at an average price of $38.62 per share, with a total value of $77,240.00. Following the completion of the acquisition, the director now owns 11,340 shares in the company, valued at approximately $437,950.80. This represents a 0.00 % increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Dennis Fehr acquired 6,570 shares of the firm’s stock in a transaction that occurred on Wednesday, September 4th. The stock was acquired at an average cost of $38.04 per share, with a total value of $249,922.80. Following the completion of the acquisition, the chief financial officer now directly owns 6,570 shares in the company, valued at approximately $249,922.80. The disclosure for this purchase can be found here. 1.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cognex

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. HHM Wealth Advisors LLC increased its stake in Cognex by 19.8% during the 2nd quarter. HHM Wealth Advisors LLC now owns 1,819 shares of the scientific and technical instruments company’s stock valued at $85,000 after buying an additional 301 shares during the period. Fifth Third Bancorp raised its holdings in Cognex by 11.3% during the second quarter. Fifth Third Bancorp now owns 3,829 shares of the scientific and technical instruments company’s stock worth $179,000 after purchasing an additional 390 shares in the last quarter. Covestor Ltd lifted its position in Cognex by 18.7% in the first quarter. Covestor Ltd now owns 2,977 shares of the scientific and technical instruments company’s stock worth $126,000 after purchasing an additional 469 shares during the period. Commonwealth Equity Services LLC boosted its stake in Cognex by 3.6% during the 1st quarter. Commonwealth Equity Services LLC now owns 13,871 shares of the scientific and technical instruments company’s stock valued at $588,000 after purchasing an additional 487 shares in the last quarter. Finally, Creative Planning increased its position in shares of Cognex by 2.4% during the 3rd quarter. Creative Planning now owns 21,919 shares of the scientific and technical instruments company’s stock valued at $888,000 after purchasing an additional 512 shares during the period. 88.12% of the stock is currently owned by institutional investors.

Cognex Stock Performance

The stock has a 50 day moving average price of $39.35 and a 200 day moving average price of $42.93. The company has a market cap of $6.91 billion, a P/E ratio of 69.76 and a beta of 1.41.

About Cognex

Cognex Corporation provides machine vision products that capture and analyze visual information to automate manufacturing and distribution tasks worldwide. Its machine vision products are used to automate the manufacturing and tracking of discrete items, including mobile phones, electric vehicle batteries, and e-commerce packages by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process.